Hubbell Inc (HUBB)

Quick 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	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
Receivables	US$ in thousands	785,400	852,900	811,200	778,300	741,600	800,500	780,500	777,900	675,300	798,300	762,300	703,100	553,300	711,400	644,100	707,700	683,000	787,100	785,500	716,200
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
Quick ratio		0.86	1.35	1.23	1.16	1.10	1.11	1.22	1.19	0.91	1.03	1.04	1.00	0.87	1.25	1.29	1.21	1.04	1.27	1.15	1.10

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 is a key indicator of a company's short-term liquidity and ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Hubbell Inc.'s quick ratio fluctuated over the past eight quarters, ranging from 0.95 to 1.43. In Q4 2023, the quick ratio was 0.95, which implies that for every dollar of current liabilities, the company had $0.95 of highly liquid assets available to cover those obligations. This suggests a slight liquidity strain.

The quick ratio was highest in Q3 2023 at 1.43, indicating a significant improvement in liquidity where the company had $1.43 of liquid assets for every dollar of current liabilities. This suggests a strong ability to meet short-term obligations.

Comparing to the previous quarters, the quick ratio experienced fluctuations, with some quarters showing stronger liquidity positions (above 1.2) and others showing relatively weaker liquidity positions (below 1.2). However, overall, the quick ratio has mostly remained above 1, indicating that Hubbell Inc. generally maintained a healthy liquidity position during the analyzed period.