H B Fuller Company (FUL)
Debt-to-equity 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,829,250 | 1,836,590 | 1,872,470 | 1,852,040 | 1,845,280 | 1,736,260 | 1,885,040 | 1,903,980 | 1,888,260 | 1,591,480 | 1,636,690 | 1,685,550 | 1,741,890 | 1,756,980 | 1,847,840 | 1,908,340 | 1,904,900 | 1,898,380 | 2,080,340 | 2,148,650 |
| Total stockholders’ equity | US$ in thousands | 1,767,520 | 1,755,200 | 1,726,440 | 1,682,490 | 1,633,470 | 1,610,170 | 1,578,090 | 1,614,150 | 1,645,250 | 1,596,770 | 1,567,290 | 1,562,630 | 1,441,620 | 1,381,320 | 1,313,390 | 1,218,370 | 1,221,600 | 1,222,350 | 1,175,600 | 1,162,580 |
| Debt-to-equity ratio | 1.03 | 1.05 | 1.08 | 1.10 | 1.13 | 1.08 | 1.19 | 1.18 | 1.15 | 1.00 | 1.04 | 1.08 | 1.21 | 1.27 | 1.41 | 1.57 | 1.56 | 1.55 | 1.77 | 1.85 |
March 2, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,829,250K ÷ $1,767,520K
= 1.03
The debt-to-equity ratio of H B Fuller Company has exhibited some volatility over the past few years. The ratio has generally increased from 1.00 in Nov 27, 2021, to a peak of 1.85 in Aug 31, 2019, before decreasing to 1.03 in Mar 2, 2024. This indicates that the company has been relying more on debt financing compared to equity financing.
A debt-to-equity ratio of above 1 indicates that the company has more financial leverage through debt than equity. This could imply higher financial risk since the company may have obligations to service its debt. However, a higher debt-to-equity ratio can also signify that the company is utilizing leverage to finance its operations and potentially achieve higher returns for shareholders.
It is important to note that a high debt-to-equity ratio may not always be a negative indicator, as it can depend on the industry norms and the company's overall financial health. Investors and analysts should further investigate the reasons behind the changes in the debt-to-equity ratio and consider other financial metrics to assess the company's financial stability and growth prospects.