Unifirst Corporation (UNF)

Based on the payables turnover data of Unifirst Corporation over the past five years, we can observe a fluctuating trend in the efficiency of the company in managing its trade payables. The payables turnover ratio measures how many times a company pays off its accounts payable during a certain period. A higher payables turnover ratio generally indicates that the company is paying off its suppliers more frequently.

In 2024, Unifirst Corporation's payables turnover ratio stands at 17.08, which indicates that the company paid off its accounts payable approximately 17 times during the year. This represents an increase from the previous year, where the ratio was 15.97. The increase in the payables turnover ratio could suggest that Unifirst Corporation has improved its efficiency in managing its trade payables or negotiated better terms with its suppliers.

Comparing the current ratio with the data from previous years, we can see a general increasing trend in payables turnover since 2020 when the ratio was 18.19. However, there was a slight decrease in 2021 to 14.03 before rising again in the following years.

Overall, the increasing trend in Unifirst Corporation's payables turnover indicates a more efficient management of its accounts payable over the years, which could be attributed to improved working capital management practices or changes in payment terms negotiated with suppliers.

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Aug 31, 2024