Hubbell Inc (HUBB)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	5,601,600	5,602,400	5,527,800	5,432,000	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
Total current assets	US$ in thousands	2,089,300	2,319,100	2,274,700	2,232,500	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
Total current liabilities	US$ in thousands	1,274,200	1,396,700	1,258,500	1,348,700	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
Working capital turnover		6.87	6.07	5.44	6.15	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,601,600K ÷ ($2,089,300K – $1,274,200K)
= 6.87

Hubbell Inc's working capital turnover ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio is a measure of how efficiently a company utilizes its working capital to generate sales revenue.

The trend in Hubbell Inc's working capital turnover ratio shows some variability, with the ratio generally hovering around the range of 4.5 to 6.8. A higher turnover ratio indicates that the company is effectively using its working capital to generate sales. On the other hand, a lower ratio may suggest inefficiencies in managing working capital.

Hubbell Inc experienced a peak in the working capital turnover ratio at December 31, 2024, with a ratio of 6.87. This indicates that the company efficiently utilized its working capital during that period to generate sales revenue. Conversely, the lowest ratio was seen at September 30, 2023, with a ratio of 4.18, suggesting relatively less efficient utilization of working capital at that point in time.

Overall, Hubbell Inc's working capital turnover ratio shows fluctuations over the period under consideration. It is important for the company to monitor this ratio closely and analyze the reasons behind any significant changes to ensure optimal utilization of working capital in driving sales.