H B Fuller Company (FUL)
Debt-to-equity 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-equity ratio | 1.05 | 1.08 | 1.00 | 1.27 | 1.55 |
December 2, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,836,590K ÷ $1,755,200K
= 1.05
The debt-to-equity ratio of H.B. Fuller Company has fluctuated over the past five years. In 2019, the ratio was relatively high at 1.62, indicating a higher level of debt relative to equity. Subsequently, there was a downward trend in the ratio, with a decline to 1.28 in 2020, 1.01 in 2021, and 1.10 in 2022. However, in 2023, the ratio increased slightly to 1.06.
The decreasing trend in the debt-to-equity ratio from 2019 to 2022 suggests an improvement in the company's financial structure, as it indicates a lower reliance on debt financing in relation to equity. This trend may signify a reduced financial risk and a stronger ability to fulfill debt obligations using internal resources. However, the slight increase in the ratio in 2023 warrants attention, as it suggests a potential resurgence in debt relative to equity.
Overall, while the company has shown some improvement in managing its debt levels, continuous monitoring of the debt-to-equity ratio is necessary to ensure a sustainable and healthy capital structure.