Unifirst Corporation (UNF)
Fixed asset turnover
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,434,670 | 2,239,780 | 2,003,670 | 1,828,780 | 1,810,540 |
| Property, plant and equipment | US$ in thousands | 801,612 | 756,540 | 665,119 | 617,719 | 582,470 |
| Fixed asset turnover | 3.04 | 2.96 | 3.01 | 2.96 | 3.11 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,434,670K ÷ $801,612K
= 3.04
Unifirst Corporation's fixed asset turnover has been relatively stable over the past five years, ranging between 2.96 and 3.11. This ratio indicates that, on average, the company generates around 3 times in sales revenue for every dollar invested in fixed assets. A higher fixed asset turnover is generally preferred as it suggests efficient utilization of fixed assets to generate sales.
The slight fluctuations in the ratio over the years may suggest variations in the company's operational efficiency in utilizing its fixed assets during different periods. It would be important to further investigate the underlying reasons for these fluctuations to better understand the company's asset management effectiveness.
Peer comparison
Aug 31, 2024