H B Fuller Company (FUL)
Fixed asset turnover
| Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,512,171 | 3,510,935 | 3,566,270 | 3,606,866 | 3,701,885 | 3,749,184 | 3,688,394 | 3,573,994 | 3,408,609 | 3,278,031 | 3,158,247 | 3,022,880 | 2,869,609 | 2,790,269 | 2,751,735 | 2,785,648 | 2,870,629 | 2,897,000 | 2,926,323 | 2,971,054 |
| Property, plant and equipment | US$ in thousands | 822,899 | 824,655 | 801,296 | 787,412 | 757,021 | 733,667 | 706,470 | 702,455 | 712,795 | 695,367 | 675,892 | 681,576 | 669,444 | 670,744 | 654,718 | 635,695 | 634,296 | 629,813 | 614,376 | 627,338 |
| Fixed asset turnover | 4.27 | 4.26 | 4.45 | 4.58 | 4.89 | 5.11 | 5.22 | 5.09 | 4.78 | 4.71 | 4.67 | 4.44 | 4.29 | 4.16 | 4.20 | 4.38 | 4.53 | 4.60 | 4.76 | 4.74 |
March 2, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,512,171K ÷ $822,899K
= 4.27
The fixed asset turnover ratio for H B Fuller Company has shown fluctuations over the past quarters, with values ranging from 4.16 to 5.22. Generally, a higher fixed asset turnover ratio indicates that the company is generating more sales revenue per dollar invested in fixed assets, reflecting efficient asset utilization.
The trend of the fixed asset turnover ratio for H B Fuller Company indicates that the company has been able to efficiently utilize its fixed assets to generate sales revenue. The ratio has generally been above 4.00, which suggests that the company is effectively leveraging its fixed assets to generate revenue.
However, there have been slight fluctuations in the ratio over the quarters, which could be attributed to changes in sales volume, asset management efficiency, or capital expenditure decisions. It is important for the company to monitor these fluctuations and ensure that its fixed assets are being utilized optimally to support revenue generation.
Overall, the consistent range of the fixed asset turnover ratio above 4.00 indicates that H B Fuller Company has been effectively managing its fixed assets to drive sales, but further analysis and comparison with industry peers may provide more insights into the company's asset utilization efficiency.