Hubbell Inc (HUBB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	5.54	5.53	5.43	5.42	5.30	5.51	5.49	5.58	5.84	5.71	5.78	5.84	6.17	5.76	6.15	6.02	7.07	6.45	6.36	6.77
Receivables turnover	7.41	6.26	6.19	6.28	6.79	6.11	6.34	6.46	6.60	5.98	6.00	5.91	6.69	5.58	5.71	5.87	7.48	5.91	6.71	6.45
Payables turnover	8.61	8.58	7.92	7.62	7.83	7.83	7.86	7.97	8.16	7.41	7.56	7.54	7.67	8.21	8.44	8.81	10.97	9.73	10.83	11.26
Working capital turnover	6.87	6.07	5.44	6.15	6.32	4.18	4.53	4.81	5.25	5.14	4.54	4.76	5.55	5.59	5.83	6.08	6.48	4.96	4.73	5.48

Hubbell Inc's activity ratios provide insight into the efficiency with which the company manages its resources.

1. Inventory Turnover: Hubbell Inc's inventory turnover ratio has been relatively stable over the past few years, ranging between 5.30 to 7.07. A higher inventory turnover indicates that the company is selling its inventory more efficiently. The slight decline in the ratio towards the end of the period may indicate potential inventory management challenges.

2. Receivables Turnover: The receivables turnover ratio has also shown consistency, fluctuating around 5.87 to 7.48. A higher turnover ratio suggests that the company is collecting its receivables efficiently. The increase in the ratio towards the end of the period is a positive sign of improved receivables management.

3. Payables Turnover: The payables turnover ratio demonstrates how quickly the company pays its suppliers. The ratio has decreased from 11.26 to 8.61, indicating a reduction in the number of times the company pays its payables within a period. This may suggest changes in the company's payment terms or liquidity position.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Hubbell Inc's working capital turnover has shown some variability, with values ranging from 4.18 to 6.87. The higher the ratio, the better the company is utilizing its working capital to generate revenue. The increase in the ratio towards the end of the period is a positive trend.

Overall, Hubbell Inc's activity ratios reflect a generally efficient management of its resources, with some fluctuations observed over the years. Monitoring these ratios can help assess the company's operational efficiency and identify areas for potential improvement.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	65.85	66.03	67.25	67.39	68.88	66.27	66.46	65.45	62.51	63.91	63.12	62.54	59.13	63.32	59.31	60.65	51.66	56.61	57.43	53.89
Days of sales outstanding (DSO)	days	49.26	58.30	58.98	58.16	53.73	59.79	57.57	56.48	55.28	61.00	60.80	61.76	54.55	65.38	63.96	62.17	48.78	61.74	54.41	56.57
Number of days of payables	days	42.37	42.53	46.06	47.88	46.60	46.63	46.43	45.78	44.72	49.29	48.31	48.39	47.59	44.45	43.27	41.45	33.27	37.52	33.69	32.42

The activity ratios for Hubbell Inc provide insights into the efficiency of its operations.

1. Days of Inventory on Hand (DOH):
- The DOH increased from 53.89 days on March 31, 2020, to 65.85 days on December 31, 2024.
- This indicates that the company held inventory for a longer period in the latter part of the period, which could tie up capital and impact liquidity.

2. Days of Sales Outstanding (DSO):
- DSO fluctuated over the period, with a range from 48.78 days on December 31, 2020, to 65.38 days on September 30, 2021.
- Higher DSO values might indicate issues with collecting receivables promptly and possibly credit terms extended to customers.

3. Number of Days of Payables:
- The days of payables increased slightly from 32.42 days on March 31, 2020, to 42.37 days on December 31, 2024.
- This suggests that the company took longer to pay its bills, which could be a positive sign in terms of cash flow management.

Overall, an in-depth analysis of these activity ratios can provide a better understanding of Hubbell Inc's inventory management, accounts receivable collection efficiency, and payable practices over the period in consideration.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	7.71	8.09	8.20	8.20	8.18	9.10	9.23	9.33	9.27	10.01	10.08	9.99	9.83	8.55	8.39	7.99	9.44	8.67	8.83	9.22
Total asset turnover	0.84	0.81	0.80	0.79	0.77	0.90	0.91	0.92	0.91	0.90	0.89	0.89	0.86	0.85	0.84	0.78	0.81	0.86	0.85	0.92

Hubbell Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into how efficiently the company utilizes its assets to generate sales revenue.

The Fixed Asset Turnover ratio measures the company's ability to generate sales from its investment in fixed assets. From March 31, 2020, to December 31, 2024, Hubbell Inc's Fixed Asset Turnover ratio fluctuated, ranging from a low of 7.71 to a high of 10.08. The ratio generally improved over the period, indicating an increase in the company's efficiency in utilizing its fixed assets to generate revenue, with some fluctuations observed in between.

The Total Asset Turnover ratio, on the other hand, assesses how effectively the company generates sales from all its assets. Hubbell Inc's Total Asset Turnover ratio exhibited a relatively stable trend during the same period, ranging from 0.77 to 0.92. The ratio remained mostly consistent, with a slight increase towards the end of the period, implying that the company was able to generate more revenue per dollar of total assets as time progressed.

Overall, the trends observed in both ratios suggest that Hubbell Inc improved its efficiency in utilizing both fixed and total assets to generate sales revenue over the analyzed period, with some fluctuations in the Fixed Asset Turnover ratio but relatively stable performance in the Total Asset Turnover ratio.