Hubbell Inc (HUBB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	785,400	741,600	675,300	553,300	683,000
Total current liabilities	US$ in thousands	1,323,400	1,088,500	1,065,200	948,200	844,900
Quick ratio		0.86	1.10	0.91	0.87	1.04

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($336,100K + $12,600K + $785,400K) ÷ $1,323,400K
= 0.86

The quick ratio of Hubbell Inc. has fluctuated over the past five years, with values ranging from 0.95 to 1.18. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. In 2023, the quick ratio decreased to 0.95 from 1.18 in 2022, suggesting a potential weakening in the company's ability to cover its current liabilities with its quick assets. This may signal a liquidity challenge for Hubbell Inc., as a lower quick ratio indicates a higher proportion of current liabilities relative to liquid assets. Further analysis of the company's asset composition and working capital management practices may be warranted to address the decline in the quick ratio over the past year.