H B Fuller Company (FUL)
Financial leverage ratio
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,723,580 | 4,463,630 | 4,274,530 | 4,036,700 | 3,985,730 |
| Total stockholders’ equity | US$ in thousands | 1,755,200 | 1,610,170 | 1,596,770 | 1,381,320 | 1,222,350 |
| Financial leverage ratio | 2.69 | 2.77 | 2.68 | 2.92 | 3.26 |
December 2, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,723,580K ÷ $1,755,200K
= 2.69
The financial leverage ratio of H.B. Fuller Company has shown a fluctuating trend over the past five years. The ratio decreased from 3.26 in 2019 to 2.69 in 2023, indicating a reduction in the company's reliance on debt to finance its assets. This trend suggests that the company has been able to maintain a more conservative capital structure and reduce its financial risk over the years. However, the ratio increased again in 2020 to 2.92 before declining slightly to 2.68 in 2021 and then rising to 2.77 in 2022.
Overall, the company's financial leverage ratio reflects a mix of debt and equity in its capital structure, with a tendency towards decreasing leverage in recent years. This could imply improved financial stability and risk management strategies implemented by the company. Nevertheless, it would be important to assess the specific factors behind these fluctuations to gain a comprehensive understanding of the company's financial leverage dynamics.