H B Fuller Company (FUL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,478,845	2,502,037	2,583,092	2,637,996	2,736,269	2,785,484	2,731,357	2,672,171	2,542,757	2,432,708	2,340,741	2,211,480	2,090,858	2,033,620	2,007,511	2,021,947	2,073,370	2,090,078	2,113,189	2,150,211
Inventory	US$ in thousands	490,179	442,040	472,641	499,275	526,041	491,781	547,278	543,126	547,868	448,404	462,635	427,835	388,773	323,213	354,221	388,698	380,975	337,267	373,609	382,612
Inventory turnover		5.06	5.66	5.47	5.28	5.20	5.66	4.99	4.92	4.64	5.43	5.06	5.17	5.38	6.29	5.67	5.20	5.44	6.20	5.66	5.62

March 2, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,478,845K ÷ $490,179K
= 5.06

H B Fuller Company's inventory turnover ratio fluctuated over the past several quarters, ranging from a low of 4.64 to a high of 6.29. On average, the inventory turnover ratio was approximately 5.44 during the period in consideration.

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period (usually a year) the company sells and replaces its inventory. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels, while a lower ratio may suggest overstocking or slow-moving inventory.

H B Fuller's inventory turnover ratio has been relatively stable within the range of 4.64 to 6.29, indicating consistent inventory management over the period observed. However, it is important to analyze the trend over a longer period to assess if there are any underlying issues affecting inventory management efficiency within the company.