H B Fuller Company (FUL)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 525,689 | 577,932 | 576,060 | — | — | 607,365 | 649,727 | 644,544 | 616,274 | 614,645 | 572,855 | 583,270 | 504,994 | 514,916 | 476,099 | 448,126 | 457,826 | 493,181 | 485,688 | — |
| 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 |
| Quick ratio | 1.06 | 1.09 | 1.09 | 0.16 | 0.20 | 0.97 | 0.96 | 0.99 | 0.94 | 0.92 | 0.90 | 1.00 | 1.03 | 1.16 | 1.21 | 1.05 | 0.99 | 1.12 | 1.32 | 0.19 |
March 2, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($165,249K
+ $—K
+ $525,689K)
÷ $653,177K
= 1.06
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that the company can easily cover its current liabilities with its quick assets.
Analyzing the quick ratio of H B Fuller Company over the past few quarters reveals fluctuating levels. The quick ratio was relatively stable and above 1 from Feb 2021 to Mar 2023, indicating a strong ability to meet short-term obligations. However, in Jun 2023, the quick ratio dropped significantly to 0.16, suggesting a potential liquidity issue or a decrease in quick assets relative to current liabilities. This low ratio might raise concerns about the company's ability to pay its short-term obligations promptly.
It's important to note that the quick ratio improved in the following quarters, reaching 1.09 in Dec 2023 and Mar 2024. This recovery indicates an enhancement in the company's liquidity position, which is a positive sign for investors and creditors.
Overall, the fluctuations in H B Fuller Company's quick ratio highlight the importance of closely monitoring liquidity levels to ensure the company's ability to cover its short-term obligations efficiently.