H B Fuller Company (FUL)
Payables turnover
| Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,506,859 | 2,477,472 | 2,472,436 | 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 |
| Payables | US$ in thousands | 491,435 | 493,550 | 474,095 | 460,649 | 439,700 | 394,914 | 436,376 | 450,203 | 460,669 | 485,479 | 507,103 | 531,428 | 500,321 | 485,796 | 433,515 | 373,604 | 316,460 | 272,232 | 319,616 | 333,749 |
| Payables turnover | 5.10 | 5.02 | 5.22 | 5.38 | 5.69 | 6.54 | 6.05 | 6.08 | 6.05 | 5.63 | 5.27 | 4.78 | 4.86 | 4.82 | 5.10 | 5.60 | 6.43 | 7.37 | 6.33 | 6.21 |
November 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,506,859K ÷ $491,435K
= 5.10
The payables turnover ratio for H B Fuller Company, which measures how efficiently the company manages its accounts payable, has displayed fluctuations over time. The data shows that the payables turnover ratio ranged from a high of 7.37 in August 2020 to a low of 4.78 in February 2022.
A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which may suggest good liquidity and strong vendor relationships. On the other hand, a lower ratio could imply slower payments to suppliers, potentially signaling cash flow strain or weaker bargaining power with vendors.
It is noteworthy that the payables turnover ratio has generally trended downwards over the period, with some fluctuations. The company experienced a slight increase in the ratio towards the end of the observed period, reaching 5.10 in November 2024.
Overall, a declining payables turnover ratio may indicate a shift in the company's payment terms or cash flow situation. Further analysis of the company's financial health and relationship with suppliers would be necessary to fully understand the implications of these changes in the payables turnover ratio for H B Fuller Company.
Peer comparison
Nov 30, 2024