H B Fuller Company (FUL)
Cash ratio
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 169,352 | 179,453 | 79,910 | 61,786 | 100,534 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 719,290 | 692,811 | 705,732 | 736,850 | 530,132 |
| Cash ratio | 0.24 | 0.26 | 0.11 | 0.08 | 0.19 |
November 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($169,352K
+ $—K)
÷ $719,290K
= 0.24
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Looking at the data provided for H B Fuller Company, we can see fluctuations in the cash ratio over the years.
1. In November 28, 2020, the cash ratio was at 0.19, indicating that the company had $0.19 in cash for every $1 of current liabilities. This suggests a relatively healthy liquidity position.
2. However, by November 27, 2021, the cash ratio had decreased to 0.08, signaling a decline in the company's ability to cover its short-term obligations with its cash reserves. This could raise concerns about its liquidity position.
3. The cash ratio improved to 0.11 by December 3, 2022, indicating a slight recovery in the company's liquidity position. Although it was still lower than the initial ratio in 2020, the trend was positive.
4. By December 2, 2023, the cash ratio significantly increased to 0.26, which is a positive sign that the company had improved its ability to meet short-term obligations with its available cash and cash equivalents.
5. The cash ratio remained relatively stable at 0.24 by November 30, 2024, maintaining a strong liquidity position compared to the ratio in earlier years.
Overall, the analysis of the cash ratio for H B Fuller Company shows fluctuations over the years, with some periods indicating lower liquidity and others showing improved cash coverage of short-term liabilities. This information could be valuable for investors and stakeholders assessing the company's financial health and risk management strategies.
Peer comparison
Nov 30, 2024