H B Fuller Company (FUL)

Based on the provided data, H B Fuller Company's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have shown fluctuating trends over the years.

- Current Ratio: The current ratio measures the company's ability to meet its short-term obligations using its current assets. H B Fuller Company's current ratio ranged from 1.66 to 1.92 over the past five years, with the highest value recorded on November 28, 2020. This indicates that the company had $1.66 to $1.92 in current assets for every dollar of current liabilities during this period.

- Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. H B Fuller Company's quick ratio ranged from 0.92 to 1.09 over the same period. The lowest quick ratio was observed on November 27, 2021, while the highest was on December 2, 2023.

- Cash Ratio: The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. H B Fuller Company's cash ratio ranged from 0.08 to 0.26 over the five-year period. The lowest value was seen on November 27, 2021, and the highest was on December 2, 2023.

Overall, H B Fuller Company's liquidity position, as depicted by these ratios, has varied over the years, indicating potential fluctuations in the company's ability to meet its short-term financial obligations with its available liquid assets. It is essential for stakeholders to monitor these ratios closely to assess the company's ongoing liquidity management and financial health.

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Additional liquidity measure

The cash conversion cycle of H B Fuller Company has shown a positive trend over the years, indicating an improvement in efficiently managing its cash flows. Starting at 68.57 days on November 28, 2020, the cycle decreased to 53.62 days by November 30, 2024. This suggests that the company has been able to convert its investments in raw materials into cash more quickly. A decreasing cash conversion cycle generally means the company is managing its working capital effectively, possibly through better inventory management, accounts receivable collection, and payment of accounts payable. This improvement is positive as it signifies the company's ability to generate cash and minimize the time it takes to convert its resources into revenue.