H B Fuller Company (FUL)

The solvency ratios of H B Fuller Company indicate its ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable, hovering around 0.40 in recent periods, suggesting that the company finances about 40% of its assets with debt.

The debt-to-capital ratio has also remained steady at around 0.52 to 0.53, reflecting that approximately 52% to 53% of the company's capital structure is attributed to debt.

The debt-to-equity ratio has shown slight fluctuations but generally indicates that the company relies more on debt financing, with ratios ranging from 1.00 to 1.85. This suggests a higher proportion of debt compared to equity in the company’s capital structure.

The financial leverage ratio, at levels between 2.65 to 3.57, implies that the company has been using leverage to finance its operations and investments, with a tendency towards higher leverage in recent periods.

Overall, the solvency ratios of H B Fuller Company demonstrate a moderate level of leverage and debt utilization in its capital structure, suggesting a balance between debt and equity financing to support its operations and growth strategies. However, the company should continue to monitor these ratios to ensure sustainable financial health and manage its debt obligations effectively.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest expenses on outstanding debt using its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

H B Fuller Company's interest coverage ratio has shown some variability over the past few quarters, ranging from 2.18 to 3.81. The ratio exceeded 3.0 in most periods, suggesting that the company generally had sufficient earnings to cover its interest payments comfortably. However, it is important to note that a ratio of less than 1.0 would indicate that the company is not generating enough income to cover its interest expenses.

The trend in the interest coverage ratio can provide insights into the company's financial health and risk levels. In H B Fuller Company's case, the ratio has generally been above 2.0, indicating a reasonable cushion for meeting interest obligations. Investors and creditors typically prefer to see a consistent or improving trend in this ratio, as it signifies the company's ability to handle its debt burden effectively.

Overall, based on the data provided, H B Fuller Company has maintained a moderate to strong interest coverage ratio, which suggests a relatively healthy financial position in terms of its ability to cover interest payments with its operating income.