H B Fuller Company (FUL)

The current ratio of H B Fuller Company has shown fluctuations over the reported periods, ranging from a low of 1.66 to a high of 2.17. While the ratio indicates the company's ability to cover its short-term liabilities with current assets, the trend shows some inconsistency. The latest current ratio stands at 1.81, reflecting a moderate level of liquidity.

In terms of the quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, H B Fuller Company has generally maintained a decent position over time. The quick ratio has varied between 0.16 and 1.21, with the most recent figure standing at 1.01. This suggests the company has a satisfactory ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, has also demonstrated variability. The company's cash ratio has ranged from 0.08 to 0.26, with the latest figure reported at 0.24. This indicates an improved ability to settle short-term obligations exclusively through cash reserves.

Overall, while there have been fluctuations in the liquidity ratios of H B Fuller Company, the company maintains a generally stable position with a current ratio around 1.81, a quick ratio of 1.01, and a cash ratio of 0.24, reflecting a satisfactory level of liquidity to handle short-term obligations.

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Additional liquidity measure

The cash conversion cycle of H B Fuller Company has exhibited fluctuations over the analyzed period. The company's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, was at its highest at 78.06 days in August 2020 and at its lowest at 8.70 days in June 2023.

Generally, a shorter cash conversion cycle indicates that the company is efficient in managing its working capital, whereas a longer cycle may suggest inefficiencies in inventory management, collection practices, or payment terms.

During the most recent periods, the cash conversion cycle decreased to 53.62 days in November 2024, indicating an improvement in the company's ability to convert its resources into cash. This reduction could be attributed to enhanced inventory management, better accounts receivable collections, or optimized payment practices.

Overall, monitoring and managing the cash conversion cycle is crucial for H B Fuller Company to ensure the efficient use of its resources and optimize its working capital management for sustained financial health and operational efficiency.