Unifirst Corporation (UNF)
Working capital 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 current assets | US$ in thousands | 840,118 | 1,063,890 | 1,103,790 | 969,334 | 913,791 |
| Total current liabilities | US$ in thousands | 267,229 | 243,745 | 254,670 | 210,096 | 189,844 |
| Working capital turnover | 3.91 | 2.44 | 2.15 | 2.38 | 2.51 |
August 26, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,239,780K ÷ ($840,118K – $267,229K)
= 3.91
Unifirst Corp.'s working capital turnover has shown a positive trend over the past five years, indicating an improvement in the efficiency of its working capital management. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
From 2019 to 2023, Unifirst Corp.'s working capital turnover has increased from 2.50 to 3.90. This suggests that the company has been able to generate more sales revenue for every dollar of working capital invested. A higher working capital turnover ratio generally indicates that the company is effectively managing its working capital to support its operations and sales activities.
The increase in the working capital turnover ratio reflects improved efficiency in utilizing current assets and liabilities to drive sales growth. This could be the result of better inventory management, faster accounts receivable collection, or more efficient use of short-term assets and liabilities.
Overall, the rising trend in Unifirst Corp.'s working capital turnover ratio is a positive indicator of its improving operational efficiency and financial management. This trend suggests that the company has been able to optimize its working capital to support sales activities and generate higher revenues, potentially enhancing its overall financial performance.
Peer comparison
Aug 26, 2023