Hubbell Inc (HUBB)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,622,200	5,333,700	4,894,800	4,120,400	4,125,400
Total current assets	US$ in thousands	2,089,300	2,167,200	2,021,400	1,879,300	1,587,600
Total current liabilities	US$ in thousands	1,274,200	1,323,400	1,088,500	1,065,200	948,200
Working capital turnover		6.90	6.32	5.25	5.06	6.45

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,622,200K ÷ ($2,089,300K – $1,274,200K)
= 6.90

Hubbell Inc's working capital turnover ratio has shown some fluctuations over the years. The ratio decreased from 6.45 in December 31, 2020, to 5.06 in December 31, 2021, which suggests a decrease in efficiency in utilizing its working capital to generate sales. However, there was a slight improvement in the ratio to 5.25 in December 31, 2022.

In December 31, 2023, the working capital turnover ratio further improved to 6.32, indicating a more efficient use of working capital to generate sales. The most recent data point, December 31, 2024, shows a working capital turnover ratio of 6.90, reflecting a continued improvement in efficiency.

Overall, Hubbell Inc has been able to enhance its efficiency in utilizing its working capital to generate sales, as evidenced by the increasing trend in the working capital turnover ratio over the years.