Hubbell Inc (HUBB)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	756,000	785,400	741,600	675,300	553,300
Total current liabilities	US$ in thousands	1,274,200	1,323,400	1,088,500	1,065,200	948,200
Quick ratio		0.86	0.86	1.10	0.91	0.87

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($329,100K + $15,900K + $756,000K) ÷ $1,274,200K
= 0.86

Hubbell Inc's quick ratio has fluctuated over the past five years. The quick ratio was 0.87 as of December 31, 2020, indicating that the company may have had difficulty meeting its short-term obligations using its most liquid assets. However, by December 31, 2022, the quick ratio had improved to 1.10, suggesting that the company had a more favorable ability to cover its current liabilities with its quick assets.

In the subsequent years, the quick ratio decreased to 0.86 as of both December 31, 2023 and December 31, 2024. This decline may raise some concerns about the company's short-term liquidity position and its ability to meet immediate payment obligations. Overall, a quick ratio above 1 is generally considered healthy, as it indicates that the company has sufficient liquid assets to cover its short-term liabilities. Hubbell Inc may need to monitor its liquidity position closely to ensure it remains stable and can meet its obligations in the future.