H B Fuller Company (FUL)
Receivables turnover
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,510,930 | 3,749,180 | 3,278,030 | 2,790,270 | 2,897,000 |
| Receivables | US$ in thousands | 577,932 | 607,365 | 614,645 | 514,916 | 493,181 |
| Receivables turnover | 6.07 | 6.17 | 5.33 | 5.42 | 5.87 |
December 2, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,510,930K ÷ $577,932K
= 6.07
The receivables turnover ratio measures how efficiently a company collects payment from its customers. It is calculated by dividing the net credit sales by the average accounts receivable balance.
Analysis of H.B. Fuller Company's receivables turnover shows a slight decrease from 5.82 in 2022 to 5.67 in 2023. This indicates that the company took slightly longer to collect its accounts receivable in 2023 compared to 2022.
However, when looking at a longer trend, the receivables turnover ratio has fluctuated between 5.09 and 5.82 over the past five years. This suggests that the company has generally been effective in managing its receivables, with only minor variations in its collection efficiency.
Overall, the receivables turnover ratio for H.B. Fuller Company indicates that it efficiently collects payment from its customers, albeit with some variability over the years.