H B Fuller Company (FUL)
Working capital turnover
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,568,740 | 3,510,930 | 3,749,180 | 3,278,030 | 2,790,270 |
| Total current assets | US$ in thousands | 1,299,200 | 1,312,100 | 1,299,380 | 1,221,170 | 1,019,780 |
| Total current liabilities | US$ in thousands | 719,290 | 692,811 | 705,732 | 736,850 | 530,132 |
| Working capital turnover | 6.15 | 5.67 | 6.32 | 6.77 | 5.70 |
November 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,568,740K ÷ ($1,299,200K – $719,290K)
= 6.15
Working capital turnover, which measures how efficiently a company is utilizing its working capital to generate sales, has shown a positive trend for H B Fuller Company over the past five years. The ratio increased from 5.70 in November 28, 2020, to 6.77 in November 27, 2021, indicating an improvement in the company's ability to generate revenue relative to its working capital.
However, there was a slight dip in the ratio in December 3, 2022, to 6.32, followed by a further decrease to 5.67 in December 2, 2023. This suggests that the company may have experienced challenges in efficiently leveraging its working capital during those periods.
Subsequently, the ratio increased to 6.15 in November 30, 2024, displaying a recovery in the company's working capital turnover efficiency. Overall, the fluctuation in the working capital turnover ratio highlights the importance of closely monitoring working capital management practices to optimize operational performance and financial health.
Peer comparison
Nov 30, 2024