Unifirst Corporation (UNF)
Total asset turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,239,780 | 2,003,670 | 1,828,780 | 1,810,540 | 1,818,460 |
| Total assets | US$ in thousands | 2,569,980 | 2,427,970 | 2,381,060 | 2,199,030 | 2,047,320 |
| Total asset turnover | 0.87 | 0.83 | 0.77 | 0.82 | 0.89 |
August 26, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,239,780K ÷ $2,569,980K
= 0.87
The total asset turnover ratio measures the efficiency of a company in generating sales revenue from its total assets. A higher ratio indicates better utilization of assets to generate sales.
Looking at the trend of Unifirst Corp.'s total asset turnover over the last five years, we can see that it has fluctuated. In 2023, the total asset turnover ratio increased to 0.87 from 0.82 in 2022, indicating that the company generated more sales revenue relative to its total assets compared to the previous year.
However, it's important to note that in 2021 the total asset turnover ratio decreased to 0.77, which was the lowest in the period. This implies that Unifirst Corp. was less efficient in utilizing its assets to generate sales revenue in that year.
In 2020 and 2019, the total asset turnover ratios were 0.82 and 0.88 respectively, showing a slight improvement in efficiency in 2020 followed by a small decline in 2019.
Overall, the fluctuation in Unifirst Corp.'s total asset turnover ratio indicates varying levels of efficiency in utilizing its assets to generate sales revenue over the years, with the ratio improving in 2023 compared to the previous year, but fluctuating in the preceding years. Further analysis is required to understand the specific factors contributing to these fluctuations and their impact on the company's performance.
Peer comparison
Aug 26, 2023