H B Fuller Company (FUL)
Cash conversion cycle
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.07 | 64.49 | 64.44 | 67.28 | 58.01 |
| Days of sales outstanding (DSO) | days | 57.10 | 60.08 | 59.13 | 68.44 | 67.36 |
| Number of days of payables | days | 71.55 | 64.14 | 60.36 | 75.07 | 56.80 |
| Cash conversion cycle | days | 53.62 | 60.42 | 63.21 | 60.65 | 68.57 |
November 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 68.07 + 57.10 – 71.55
= 53.62
The cash conversion cycle for H B Fuller Company has shown a consistent downward trend over the years, indicating an improvement in efficiency in managing its working capital. The cycle decreased from 68.57 days on November 28, 2020, to 53.62 days on November 30, 2024. This suggests that the company has been able to reduce the time it takes to convert its investments in inventory and accounts receivable into cash.
A shorter cash conversion cycle indicates that H B Fuller Company is able to collect cash from its sales and convert it back into cash or cash equivalents more quickly, which can lead to improved liquidity and a stronger cash position. Overall, the trend in the cash conversion cycle reflects positively on the company's operational efficiency and effectiveness in managing its working capital.
Peer comparison
Nov 30, 2024