H B Fuller Company (FUL)

The liquidity ratios of H B Fuller Company indicate its ability to meet short-term obligations and manage cash flow effectively.

The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown fluctuations over the periods under review, ranging from a low of 1.66 to a high of 2.08. A ratio above 1 suggests a healthy liquidity position, with a higher ratio indicating a stronger ability to meet short-term obligations.

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 has varied significantly, with values as low as 0.16 and as high as 1.32. A ratio above 1 suggests the company can meet short-term liabilities without relying on inventory sales, indicating a stronger liquidity position.

The cash ratio, which assesses the company's ability to cover current liabilities with its cash and cash equivalents, has demonstrated fluctuations over time, ranging from 0.08 to 0.26. A higher cash ratio indicates a better ability to cover current liabilities with cash on hand.

Overall, the current, quick, and cash ratios of H B Fuller Company suggest that the company has generally maintained a reasonable level of liquidity over the periods analyzed, with some fluctuations observed. It is important for the company to closely monitor these ratios to ensure it can meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of H B Fuller Company has shown fluctuations over the time periods analyzed. The company's cash conversion cycle is a metric that reflects how efficiently the company is able to convert its investments in inventory into cash receipts from its customers.

In the most recent period, as of March 2, 2024, the cash conversion cycle was 58.98 days, indicating that on average, it takes the company approximately 59 days to convert its investments in inventory back into cash. This suggests a relatively efficient cash conversion process.

Looking at historical data, the cash conversion cycle has ranged from a low of 8.70 days in June 3, 2023, to a high of 78.06 days in August 29, 2020. The lower the cash conversion cycle, the better, as it implies that the company is able to quickly turn over its inventory and collect cash from its sales.

Overall, monitoring the trend and fluctuations in the cash conversion cycle over time can provide insights into the company's efficiency in managing its working capital and its ability to generate cash flows from its operations. It is evident that H B Fuller Company has experienced variability in its cash conversion cycle, reflecting potential fluctuations in inventory management and collection of receivables over the different periods analyzed.