H B Fuller Company (FUL)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,512,171 | 3,510,935 | 3,566,270 | 3,606,866 | 3,701,885 | 3,749,184 | 3,688,394 | 3,573,994 | 3,408,609 | 3,278,031 | 3,158,247 | 3,022,880 | 2,869,609 | 2,790,269 | 2,751,735 | 2,785,648 | 2,870,629 | 2,897,000 | 2,926,323 | 2,971,054 |
| Total current assets | US$ in thousands | 1,296,850 | 1,312,100 | 1,241,390 | 1,317,950 | 1,340,920 | 1,299,380 | 1,420,930 | 1,409,010 | 1,348,620 | 1,221,170 | 1,204,460 | 1,166,940 | 1,076,600 | 1,019,780 | 989,429 | 1,007,870 | 1,028,230 | 1,033,360 | 1,080,890 | 1,108,760 |
| Total current liabilities | US$ in thousands | 653,177 | 692,811 | 618,346 | 660,832 | 643,176 | 705,732 | 737,391 | 721,983 | 721,936 | 736,850 | 709,734 | 651,672 | 568,245 | 530,132 | 455,436 | 491,762 | 543,315 | 542,157 | 457,587 | 517,576 |
| Working capital turnover | 5.46 | 5.67 | 5.72 | 5.49 | 5.31 | 6.32 | 5.40 | 5.20 | 5.44 | 6.77 | 6.38 | 5.87 | 5.64 | 5.70 | 5.15 | 5.40 | 5.92 | 5.90 | 4.69 | 5.03 |
March 2, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,512,171K ÷ ($1,296,850K – $653,177K)
= 5.46
The working capital turnover ratio for H B Fuller Company has shown fluctuations over the past several quarters, ranging from a low of 4.69 to a high of 6.77. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher ratio indicates that the company is effectively managing its working capital to support its sales operations. In this case, H B Fuller Company has generally maintained a healthy working capital turnover ratio above 5. This suggests that the company is efficiently using its working capital to generate sales, as a ratio above 5 indicates that the company is turning over its working capital more than five times a year to support its sales activities.
The trend in the working capital turnover ratio shows some variability, which may be influenced by seasonal factors or changes in the company's operating activities. It is important for the company to closely monitor this ratio to ensure optimal utilization of its working capital resources. Overall, the company's working capital turnover ratio indicates efficient management of working capital in supporting its sales activities.