H B Fuller Company (FUL)

Payables 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
Payables	US$ in thousands	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	298,869	272,554	299,935
Payables turnover		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	6.99	7.75	7.17

March 2, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,478,845K ÷ $460,649K
= 5.38

The payables turnover ratio for H B Fuller Company has shown some fluctuations over the past 21 reporting periods. The ratio indicates the number of times a company pays off its accounts payable during a specific period.

The trend in the payables turnover ratio for H B Fuller Company has been relatively stable, hovering around an average of 6 times over the periods analyzed. There was a slight increase from 5.38 in Mar 2, 2024, to 6.54 in Sep 2, 2023, before decreasing to 4.78 in Feb 26, 2022.

A higher payables turnover ratio is generally favorable, as it suggests that the company is efficiently managing its accounts payable by paying them off quickly. H B Fuller Company has generally maintained a healthy payables turnover ratio above the industry average, indicating effective management of its trade credit obligations.

It is important to note that the payables turnover ratio should be assessed in conjunction with other financial metrics to provide a comprehensive analysis of the company's financial health and operational efficiency.