H B Fuller Company (FUL)
Profitability ratios
Return on sales
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.74% | 25.70% | 25.79% | 27.12% | 27.85% |
| Operating profit margin | 10.12% | 8.61% | 7.71% | 7.82% | 7.80% |
| Pretax margin | 6.79% | 6.87% | 6.85% | 5.94% | 6.22% |
| Net profit margin | 4.13% | 4.81% | 4.92% | 4.43% | 4.52% |
H.B. Fuller Company's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin increased from 25.70% in 2019 to 28.74% in 2023, indicating an improvement in the company's ability to generate profit from its production activities. This suggests a better control over the cost of goods sold or an increase in the selling price of its products.
The operating profit margin also saw a positive trend, rising from 7.80% in 2019 to 10.12% in 2023, indicating that the company's efficiency in managing operating expenses and generating income from its core operations has improved.
The pretax margin fluctuated slightly but remained relatively stable, ranging from 5.94% in 2020 to 6.87% in 2022, before settling at 6.79% in 2023. This suggests that the company has been able to effectively manage its operating expenses and interest payments relative to its total revenue.
However, the net profit margin showed a declining trend, decreasing from 4.52% in 2019 to 4.13% in 2023. This indicates that the company's ability to convert revenue into net income has weakened over the years, possibly due to higher tax expenses or other non-operating costs.
Overall, while H.B. Fuller Company has demonstrated strength in its gross and operating profit margins, the declining trend in net profit margin warrants close attention to determine the factors impacting the company's bottom-line profitability.
Return on investment
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.52% | 7.23% | 5.91% | 5.41% | 5.67% |
| Return on assets (ROA) | 3.07% | 4.04% | 3.78% | 3.06% | 3.28% |
| Return on total capital | 9.89% | 9.64% | 7.92% | 6.96% | 7.24% |
| Return on equity (ROE) | 8.26% | 11.20% | 10.11% | 8.96% | 10.70% |
H.B. Fuller Company's profitability ratios depict its ability to generate earnings relative to its assets and capital. The operating return on assets (Operating ROA) increased from 5.41% in 2020 to 7.52% in 2023, indicating a positive trend in the company's operational efficiency in generating profits from its assets. The Return on Assets (ROA) fluctuated over the years, decreasing from 3.28% in 2019 to 3.07% in 2023, suggesting varying levels of profitability relative to its total assets.
The Return on Total Capital increased from 7.15% in 2020 to 9.96% in 2023, indicating an improvement in the company's ability to generate profits from its total invested capital. The Return on Equity (ROE) fluctuated, from 8.96% in 2020 to 11.20% in 2022 and then decreasing to 8.26% in 2023, indicating changes in the company's ability to generate profits relative to shareholder equity.
Overall, H.B. Fuller Company's profitability ratios suggest fluctuations in its ability to generate profits from its assets and capital, with the operating return on assets showing a positive trend in operational efficiency, while other ratios exhibit varying levels of profitability over the years.