H B Fuller Company (FUL)
Debt-to-capital ratio
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,836,590 | 1,736,260 | 1,591,480 | 1,756,980 | 1,898,380 |
| Total stockholders’ equity | US$ in thousands | 1,755,200 | 1,610,170 | 1,596,770 | 1,381,320 | 1,222,350 |
| Debt-to-capital ratio | 0.51 | 0.52 | 0.50 | 0.56 | 0.61 |
December 2, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,836,590K ÷ ($1,836,590K + $1,755,200K)
= 0.51
The debt-to-capital ratio for H.B. Fuller Company has shown a decreasing trend from 0.62 in 2019 to 0.51 in 2023. This indicates that the company has been reducing its dependence on debt in relation to its total capital over the past five years. A lower debt-to-capital ratio generally signifies a lower financial risk as the company relies less on debt financing. It suggests that the company has a stronger ability to meet its debt obligations using its capital resources. This reduction in the ratio could be a result of either a decrease in total debt, an increase in total capital, or a combination of both factors. Overall, the decreasing trend in the debt-to-capital ratio reflects positively on the company's financial leverage and risk management.