H B Fuller Company (FUL)

Short-term

Turnover ratios

H B Fuller Company's activity ratios provide insight into how efficiently the company is managing its resources.

1. Inventory turnover: H B Fuller Company's inventory turnover ratio has remained relatively stable over the periods, ranging between 4.64 and 6.29. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales at a consistent pace.

2. Receivables turnover: The receivables turnover ratio fluctuates between 5.18 and 6.68, suggesting that the company is collecting its receivables at a reasonable rate. A higher turnover indicates that H B Fuller Company is efficiently collecting payments from its customers.

3. Payables turnover: The payables turnover ratio ranges between 4.78 and 7.75, reflecting the speed at which the company is paying its suppliers. Higher turnover ratios suggest that the company is paying its suppliers more quickly, potentially benefiting from discounts and maintaining good relationships.

4. Working capital turnover: The working capital turnover ratio ranges between 4.69 and 6.77. A higher turnover signifies that H B Fuller Company is efficiently utilizing its working capital to generate sales revenue. This ratio indicates how many dollars of revenue are generated for each dollar of working capital employed.

Overall, these activity ratios suggest that H B Fuller Company is managing its inventory, receivables, payables, and working capital effectively. The company's ability to turn its resources into sales and collections efficiently is a positive indicator of operational efficiency and financial health.

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Average number of days

H B Fuller Company's activity ratios reflect the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
The average DOH for H B Fuller Company over the analyzed period was approximately 67 days. This indicates that, on average, the company holds inventory for about 67 days before it is sold. The trend in DOH shows some fluctuations, ranging from a low of 58 days to a high of 78 days. A lower DOH is generally preferred as it implies faster inventory turnover and more efficient management of inventory levels.

2. Days of Sales Outstanding (DSO):
The average DSO for H B Fuller Company over the analyzed period was around 63 days. DSO measures how long it takes for the company to collect payments from its customers. The trend in DSO shows variability, with values ranging from about 58 days to 70 days. A lower DSO is typically preferable as it signifies faster cash collection and better liquidity.

3. Number of Days of Payables:
The average number of days of payables for H B Fuller Company during the period analyzed was approximately 63 days. This metric indicates the average number of days the company takes to pay its suppliers. The trend in the number of days of payables shows some fluctuations, with values ranging from around 48 days to 76 days. A higher number of days of payables suggests that the company takes longer to settle its obligations to suppliers, which may be beneficial for cash flow management.

In conclusion, while H B Fuller Company's activity ratios show variability over time, monitoring and managing these ratios effectively can help the company improve its operational efficiency, working capital management, and overall financial performance.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. H B Fuller Company's fixed asset turnover ratio has fluctuated over the past several quarters, ranging from 4.16 to 5.22. This indicates that on average, the company is generating between $4.16 and $5.22 in revenue for each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio reflects how well the company is using all its assets to generate revenue. H B Fuller Company's total asset turnover ratio has varied from 0.69 to 0.84 in recent quarters. This implies that the company is generating between $0.69 and $0.84 in sales for each dollar of assets it holds.

When comparing the fixed asset turnover to the total asset turnover, we can see that the company is more efficient at generating sales from its fixed assets than its total assets as the fixed asset turnover ratio is consistently higher than the total asset turnover ratio. This suggests that H B Fuller Company is effectively using its fixed assets to drive revenue, potentially indicating efficient capital utilization and operational performance.