Hubbell Inc (HUBB)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	65.85	66.03	67.25	67.39	68.88	66.27	66.46	65.45	62.51	63.91	63.12	62.54	59.13	63.32	59.31	60.65	51.66	56.61	57.43	53.89
Days of sales outstanding (DSO)	days	49.26	58.30	58.98	58.16	53.73	59.79	57.57	56.48	55.28	61.00	60.80	61.76	54.55	65.38	63.96	62.17	48.78	61.74	54.41	56.57
Number of days of payables	days	42.37	42.53	46.06	47.88	46.60	46.63	46.43	45.78	44.72	49.29	48.31	48.39	47.59	44.45	43.27	41.45	33.27	37.52	33.69	32.42
Cash conversion cycle	days	72.73	81.80	80.16	77.67	76.01	79.43	77.60	76.15	73.08	75.63	75.61	75.90	66.09	84.25	80.00	81.36	67.17	80.84	78.16	78.04

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.85 + 49.26 – 42.37
= 72.73

The cash conversion cycle of Hubbell Inc has fluctuated over the past several quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash received from sales.

From March 2020 to December 2024, Hubbell Inc's cash conversion cycle ranged from a low of 66.09 days to a high of 84.25 days. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital and generating cash from its operations more quickly.

The company experienced a significant decrease in its cash conversion cycle from December 2021 (66.09 days) to December 2024 (72.73 days), suggesting improved efficiency in managing its inventory and collections from customers. However, there were fluctuations within this period, showing that the company may have encountered challenges in managing its cash flow efficiently in certain quarters.

Overall, a decreasing trend in the cash conversion cycle is a positive indicator of improved liquidity and operational efficiency, while an increasing trend may raise concerns about working capital management and potential liquidity risks. Hubbell Inc should continue monitoring and managing its cash conversion cycle to ensure optimal use of its resources and sustainable growth.