Hubbell Inc (HUBB)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	336,100	572,800	492,600	429,800	440,500	366,900	424,200	359,000	286,200	257,900	265,400	433,800	258,600	269,200	485,000	300,000	182,000	300,000	209,900	205,300
Short-term investments	US$ in thousands	12,600	17,900	16,200	17,000	14,300	12,500	13,900	12,400	9,400	9,900	12,600	10,200	9,300	9,000	9,900	13,500	14,200	11,300	10,500	9,500
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
Cash ratio		0.26	0.55	0.48	0.42	0.42	0.36	0.44	0.39	0.28	0.26	0.28	0.39	0.28	0.35	0.56	0.37	0.23	0.36	0.25	0.25

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 of Hubbell Inc. has exhibited fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. In Q3 2023, the cash ratio was 0.63, indicating that the company had $0.63 in cash and cash equivalents for every $1 of short-term liabilities. This was the highest cash ratio recorded during the period.

However, the cash ratio declined in Q4 2023 to 0.36, the lowest level observed in the past two years. This suggests that the company's cash position relative to its short-term obligations decreased significantly in the most recent quarter.

Overall, the trend in the cash ratio fluctuates, with some quarters showing higher liquidity levels than others. It is important for investors and stakeholders to monitor this ratio closely to assess the company's liquidity position and its ability to meet short-term financial obligations.