Hubbell Inc (HUBB)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	6.36	6.15	6.12	6.07
Receivables turnover	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	6.68	5.85	5.80	6.32
Payables turnover	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	11.59	9.81	9.45	9.97
Working capital turnover	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	6.25	4.88	5.33	5.63

Hubbell Inc.'s activity ratios provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover: This ratio indicates how many times a company sells and replaces its inventory during a specific period. Hubbell Inc.'s inventory turnover has been relatively stable around the 4.2 to 4.7 range over the past eight quarters. A higher inventory turnover generally reflects efficient inventory management.

2. Receivables Turnover: The receivables turnover ratio measures how effectively a company collects on its credit sales. Hubbell Inc. has seen fluctuation in its receivables turnover, with values ranging from 5.49 to 6.84. A higher turnover ratio suggests faster collection of receivables, indicating effective credit management.

3. Payables Turnover: This ratio evaluates how quickly a company pays its suppliers. Hubbell Inc.'s payables turnover has also varied, but generally remained around the 5.5 to 6.5 range. A higher payables turnover implies that the company is paying its suppliers promptly, which can be beneficial for maintaining good relationships with vendors.

4. Working Capital Turnover: This ratio assesses the efficiency of a company's use of working capital to generate sales. Hubbell Inc.'s working capital turnover has shown fluctuations, with values ranging from 4.2 to 6.37. A higher working capital turnover indicates that the company is efficiently utilizing its working capital to generate revenue.

In conclusion, while Hubbell Inc. demonstrates reasonable efficiency in managing its inventory, receivables, payables, and working capital, there have been some fluctuations in the activity ratios over the past eight quarters. Monitoring these ratios can help assess the company's operational efficiency and liquidity management.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	57.36	59.39	59.65	60.15
Days of sales outstanding (DSO)	days	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	54.66	62.43	62.95	57.80
Number of days of payables	days	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	31.51	37.21	38.63	36.63

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. Higher DOH values indicate that the company is holding onto inventory for a longer period, which may tie up capital and increase carrying costs.
Hubbell Inc.'s DOH has been gradually increasing over the quarters, from 77.77 days in Q4 2022 to 87.24 days in Q4 2023. This suggests a potential issue with inventory management which could lead to higher costs and reduced liquidity.

Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect its accounts receivable. A lower DSO is preferable as it signifies faster collection of receivables.
Hubbell Inc.'s DSO has fluctuated, with a slight decrease from 54.71 days in Q4 2022 to 53.35 days in Q4 2023. This shows some improvement in collecting receivables efficiently, however, it is still important for the company to monitor this closely to ensure timely collections.

Number of days of payables measures how long it takes a company to pay its suppliers. A higher number of days of payables indicates that the company is taking a longer time to settle its payables.
Hubbell Inc.'s number of days of payables has been relatively stable around the 58-59 days range over the quarters. This suggests that the company is managing its trade payables consistently.

In conclusion, Hubbell Inc. can improve its efficiency by addressing the increasing Days of inventory on hand (DOH) while maintaining a relatively stable collection period for receivables and payment of payables. Monitoring and optimizing these activity ratios can enhance the company's overall financial performance and liquidity position.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	9.03	9.25	8.94	8.97
Total asset turnover	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	0.93	0.91	0.90	0.91

Hubbell Inc.'s long-term activity ratios provide insights into the company's efficiency in managing its fixed assets and total assets turnover.

The fixed asset turnover ratio reflects how effectively the company is generating revenue from its investment in fixed assets. Hubbell's fixed asset turnover has been consistently high, ranging from 8.23 in Q4 2023 to 9.42 in Q1 2023. This suggests that the company is generating significant sales relative to its investment in fixed assets, indicating efficient utilization of its long-term assets.

On the other hand, the total asset turnover ratio measures the company's ability to generate sales from all its assets. Hubbell's total asset turnover ratio has also been relatively stable, ranging from 0.78 in Q4 2023 to 0.93 in Q1 2023. This indicates that the company is efficiently using its total assets to generate revenue.

Overall, the analysis of Hubbell Inc.'s long-term activity ratios suggests that the company is effectively utilizing both its fixed assets and total assets to generate sales, which is a positive indicator of operational efficiency and effective asset management.