H B Fuller Company (FUL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 165,249 | 179,453 | 94,934 | 103,183 | 125,482 | 79,910 | 60,708 | 68,149 | 63,511 | 61,786 | 68,134 | 69,597 | 81,192 | 100,534 | 74,922 | 70,346 | 78,738 | 112,191 | 119,776 | 100,246 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.25 | 0.26 | 0.15 | 0.16 | 0.20 | 0.11 | 0.08 | 0.09 | 0.09 | 0.08 | 0.10 | 0.11 | 0.14 | 0.19 | 0.16 | 0.14 | 0.14 | 0.21 | 0.26 | 0.19 |
March 2, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($165,249K
+ $—K)
÷ $653,177K
= 0.25
The cash ratio of H B Fuller Company has fluctuated over the past few quarters, ranging from a low of 0.08 to a high of 0.26. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents alone. A higher ratio indicates a stronger ability to meet short-term obligations without relying on external sources of liquidity.
The company's cash ratio has generally been above 0.10, which suggests that it has a reasonable level of cash on hand to cover its short-term liabilities. However, the ratio dipped to 0.08 in certain periods, indicating a potential strain on liquidity during those times.
Overall, the company should continue to monitor and manage its cash position effectively to ensure it maintains a healthy cash ratio that provides sufficient liquidity to meet its short-term obligations.