Hubbell Inc (HUBB)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	336,100	440,500	286,200	258,600	182,000
Short-term investments	US$ in thousands	12,600	14,300	9,400	9,300	14,200
Total current liabilities	US$ in thousands	1,323,400	1,088,500	1,065,200	948,200	844,900
Cash ratio		0.26	0.42	0.28	0.28	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($336,100K + $12,600K) ÷ $1,323,400K
= 0.26

The cash ratio for Hubbell Inc. has shown some fluctuation over the past five years. As of December 31, 2023, the cash ratio stands at 0.36, indicating that the company has $0.36 of cash and cash equivalents for every $1 of current liabilities.

Comparing this to the previous years, the cash ratio was highest at 0.50 at the end of 2022, indicating a stronger liquidity position at that time. However, it decreased to 0.34 at the end of 2021 before increasing again in 2023.

Overall, the cash ratio for Hubbell Inc. has generally remained above 0.30 over the past five years, indicating that the company generally has a sufficient level of cash and cash equivalents to cover its short-term obligations. However, it is important to consider other liquidity ratios and factors in conjunction with the cash ratio to get a more comprehensive view of the company's liquidity position.