Hubbell Inc (HUBB)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	5,335,100	5,207,000	5,143,100	5,029,700	4,896,200	4,789,600	4,685,500	4,597,700	4,518,800	4,456,600	4,350,200	4,128,200	4,140,200	4,205,600	4,320,700	4,566,400	4,561,000	4,601,800	4,554,400	4,523,100
Total current assets	US$ in thousands	2,167,200	2,318,400	2,205,800	2,098,700	2,021,400	1,994,500	2,034,200	1,927,100	1,879,300	1,833,200	1,745,100	1,827,500	1,587,600	1,640,400	1,793,600	1,675,000	1,574,200	1,809,900	1,729,000	1,650,600
Total current liabilities	US$ in thousands	1,323,400	1,071,400	1,069,800	1,052,100	1,088,500	1,062,500	1,002,900	962,100	1,065,200	1,035,400	999,400	1,148,700	948,200	792,700	880,700	841,300	844,900	866,200	874,100	847,900
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,335,100K ÷ ($2,167,200K – $1,323,400K)
= 6.32

Hubbell Inc.'s working capital turnover ratio shows the efficiency with which the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is managing its working capital effectively.

Looking at the trend over the past eight quarters, we observe some fluctuations in Hubbell Inc.'s working capital turnover ratio. In Q4 2023, the ratio stood at 6.37, showing a significant increase from the previous quarter. This indicates that the company was able to generate $6.37 in sales for every dollar of working capital invested during that period, which is a positive sign.

Comparing the Q4 2023 ratio with the same period in the previous year (Q4 2022), we see a slight improvement from 5.30 to 6.37, indicating enhanced efficiency in the utilization of working capital.

Overall, the trend in Hubbell Inc.'s working capital turnover ratio suggests that the company has been effectively managing its working capital to drive sales revenue. However, it is essential to monitor future quarters to ensure consistency in this efficiency.