H B Fuller Company (FUL)
Payables turnover
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,506,860 | 2,502,040 | 2,785,480 | 2,432,710 | 2,033,620 |
| Payables | US$ in thousands | 491,435 | 439,700 | 460,669 | 500,321 | 316,460 |
| Payables turnover | 5.10 | 5.69 | 6.05 | 4.86 | 6.43 |
November 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,506,860K ÷ $491,435K
= 5.10
Based on the data provided for H B Fuller Company's payables turnover ratio, we can observe fluctuations over the years. The payables turnover ratio measures how efficiently a company manages its payables by comparing the cost of goods sold to its average payables during a specific period.
In November 28, 2020, the payables turnover ratio was 6.43, indicating that the company converted its payables into cash 6.43 times during that period. The ratio decreased to 4.86 in November 27, 2021, suggesting a potential decrease in the speed at which the company was paying its suppliers.
The ratio improved in subsequent years, reaching 6.05 in December 3, 2022, and 5.69 in December 2, 2023. This upward trend indicates that the company may have become more efficient in managing its payables during those periods.
However, by November 30, 2024, the payables turnover ratio decreased to 5.10, signaling a slight decline in the efficiency of managing payables compared to the previous year.
Overall, the fluctuation in H B Fuller Company's payables turnover ratio over the years suggests varying levels of efficiency in managing its payables, which could be influenced by changes in payment terms, supplier relationships, or operational strategies. It is crucial for the company to continue monitoring and analyzing this ratio to ensure effective cash flow management and vendor relationships.
Peer comparison
Nov 30, 2024