Hubbell Inc (HUBB)

Working capital 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
Total current assets	US$ in thousands	2,167,200	2,021,400	1,879,300	1,587,600	1,574,200
Total current liabilities	US$ in thousands	1,323,400	1,088,500	1,065,200	948,200	844,900
Working capital turnover		6.32	5.25	5.06	6.45	6.23

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,333,700K ÷ ($2,167,200K – $1,323,400K)
= 6.32

Hubbell Inc.'s working capital turnover has shown a fluctuating trend over the past five years, ranging from a low of 5.15 in 2021 to a high of 6.55 in 2020. The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its liquidity to support its operations.

The average working capital turnover for Hubbell Inc. over the five-year period is 5.93, suggesting a relatively stable efficiency in utilizing its working capital to generate revenue. Investors and analysts often look at this ratio to assess the company's operational efficiency and liquidity management.

It is important to monitor trends in working capital turnover over time to ensure that the company is maintaining an optimal level of liquidity while maximizing sales generated from its working capital. Overall, Hubbell Inc.'s working capital turnover indicates a consistent performance in efficiently utilizing its working capital to support its business operations.