Unifirst Corporation (UNF)
Payables turnover
| Feb 24, 2024 | Nov 25, 2023 | Aug 26, 2023 | Feb 25, 2023 | Nov 26, 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 | May 25, 2019 | Feb 23, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,570,439 | 1,528,220 | 1,481,296 | 1,395,373 | 1,350,293 | 1,306,451 | 1,258,994 | 1,210,966 | 1,175,605 | 1,141,275 | 1,122,831 | 1,139,449 | 1,151,416 | 1,164,932 | 1,194,535 | 1,171,212 | 1,151,462 | 1,139,195 | 1,109,149 | 1,096,395 |
| Payables | US$ in thousands | 86,318 | 86,315 | 92,730 | 80,556 | 85,239 | 82,131 | 80,341 | 84,517 | 77,919 | 81,356 | 69,553 | 61,177 | 60,268 | 64,035 | 57,701 | 71,172 | 71,416 | 77,918 | 66,993 | 69,596 |
| Payables turnover | 18.19 | 17.71 | 15.97 | 17.32 | 15.84 | 15.91 | 15.67 | 14.33 | 15.09 | 14.03 | 16.14 | 18.63 | 19.10 | 18.19 | 20.70 | 16.46 | 16.12 | 14.62 | 16.56 | 15.75 |
February 24, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,570,439K ÷ $86,318K
= 18.19
The payables turnover ratio for Unifirst Corporation has shown fluctuations over the past few quarters, ranging from a low of 14.03 to a high of 20.70. The ratio indicates how many times a company pays off its accounts payable during a certain period.
On average, Unifirst Corporation pays its accounts payable approximately 16 times a year. A higher payables turnover ratio generally indicates that the company is managing its payables more efficiently, as it is able to settle its debts more frequently.
It is important to note that a very high payables turnover ratio may suggest that the company is too aggressive in paying off its creditors, which could potentially strain its cash flow. On the other hand, a low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, possibly signaling liquidity issues or strained relationships with vendors.
In conclusion, while Unifirst Corporation's payables turnover ratio has shown variability, it is essential to further analyze the company's financial health, cash flow management, and relationships with suppliers to gain a comprehensive understanding of its payables management practices.
Peer comparison
Feb 24, 2024