Hubbell Inc (HUBB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	329,100	336,100	440,500	286,200	258,600
Short-term investments	US$ in thousands	15,900	12,600	14,300	9,400	9,300
Total current liabilities	US$ in thousands	1,274,200	1,323,400	1,088,500	1,065,200	948,200
Cash ratio		0.27	0.26	0.42	0.28	0.28

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($329,100K + $15,900K) ÷ $1,274,200K
= 0.27

The cash ratio for Hubbell Inc has shown some fluctuation over the years based on the provided data. As of December 31, 2020 and December 31, 2021, the cash ratio remained stable at 0.28. However, there was a notable increase in the cash ratio to 0.42 as of December 31, 2022, indicating the company had a higher proportion of cash and cash equivalents relative to its current liabilities.

Subsequently, the cash ratio dropped to 0.26 as of December 31, 2023, suggesting a decrease in the company's ability to cover its short-term obligations with its available cash on hand. This was followed by a slight uptick to 0.27 as of December 31, 2024.

Overall, fluctuations in the cash ratio can be influenced by various factors such as changes in the company's cash position, current liabilities, and overall liquidity management. It is important for stakeholders to closely monitor the cash ratio as it provides insight into the company's liquidity and ability to meet its short-term financial obligations.