H B Fuller Company (FUL)
Working capital 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 |
| Total current assets | US$ in thousands | 1,312,100 | 1,299,380 | 1,221,170 | 1,019,780 | 1,033,360 |
| Total current liabilities | US$ in thousands | 692,811 | 705,732 | 736,850 | 530,132 | 542,157 |
| Working capital turnover | 5.67 | 6.32 | 6.77 | 5.70 | 5.90 |
December 2, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,510,930K ÷ ($1,312,100K – $692,811K)
= 5.67
The working capital turnover for H.B. Fuller Company has shown fluctuating trends over the past five years. In 2023, the working capital turnover decreased to 5.67 from 6.32 in 2022, indicating a decrease in the efficiency of utilizing working capital to generate sales. However, it is important to note that the working capital turnover was higher in 2021 at 6.77 compared to 2020 and 2019, which suggests better utilization of working capital to generate revenue.
The working capital turnover measures how efficiently a company is using its working capital to support its sales. A higher turnover indicates that the company is generating more sales from its working capital, while a lower turnover suggests inefficiency in managing working capital.
The fluctuation in the working capital turnover may be indicative of changes in the company's operating efficiency, sales volume, or management of its working capital components such as inventory, accounts receivable, and accounts payable. Further analysis of the company's financial and operational performance is warranted to understand the factors driving the changes in working capital turnover and to assess its implications for the company's overall financial health and efficiency.