Hubbell Inc (HUBB)

Current ratio

		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
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
Current ratio		1.64	1.66	1.81	1.66	1.64	2.16	2.06	1.99	1.86	1.88	2.03	2.00	1.76	1.77	1.75	1.59	1.67	2.07	2.04	1.99

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,089,300K ÷ $1,274,200K
= 1.64

Hubbell Inc's current ratio has exhibited some fluctuations over the past few years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

From the data provided, we observe that Hubbell Inc's current ratio increased steadily from March 31, 2020, to June 30, 2022, indicating an improvement in its short-term liquidity position. However, there was a slight decline in the ratio in the subsequent quarters, with some fluctuations observed in the range of 1.59 to 2.16.

The current ratio surpassed 2.0 multiple times during the period, suggesting that the company had more than enough current assets to cover its short-term liabilities. On the other hand, there were instances where the ratio dropped below 1.7, indicating potential liquidity challenges in meeting short-term obligations.

Overall, while Hubbell Inc's current ratio has shown some variability, it remained above 1.0 throughout the period, indicating that the company generally had sufficient current assets to cover its short-term liabilities. Monitoring this ratio over time can provide valuable insights into the company's liquidity position and financial health.