Hubbell Inc (HUBB)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,333,700	4,894,800	4,120,400	4,125,400	4,543,700
Receivables	US$ in thousands	785,400	741,600	675,300	553,300	683,000
Receivables turnover		6.79	6.60	6.10	7.46	6.65

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,333,700K ÷ $785,400K
= 6.79

Hubbell Inc.'s receivables turnover has shown a fluctuating trend over the past five years, ranging from 6.21 in 2021 to 6.84 in 2023. The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is more effective in collecting payments from its customers.

In this case, Hubbell Inc.'s receivables turnover has generally been above 6, which suggests that the company has been efficient in collecting payments from its customers over the years. However, the slight fluctuations in the ratio indicate some variability in the company's collection efficiency.

It is important for Hubbell Inc. to monitor its receivables turnover ratio consistently to ensure that the company maintains a healthy balance between credit sales and collections. This analysis highlights the importance of efficient accounts receivable management for maintaining healthy cash flows and overall financial health.