Unifirst Corporation (UNF)
Working capital 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 |
| Total current assets | US$ in thousands | 915,676 | 840,118 | 1,063,890 | 1,103,790 | 969,334 |
| Total current liabilities | US$ in thousands | 281,437 | 267,229 | 243,745 | 254,670 | 210,096 |
| Working capital turnover | 3.84 | 3.91 | 2.44 | 2.15 | 2.38 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,434,670K ÷ ($915,676K – $281,437K)
= 3.84
Unifirst Corporation's working capital turnover has fluctuated over the past five years. It increased from 2.38 in 2020 to 3.91 in 2023, indicating a more efficient utilization of working capital. However, in 2024, the working capital turnover slightly decreased to 3.84, still reflecting a relatively efficient management of working capital.
The working capital turnover ratio measures how effectively a company is using its working capital to generate sales. A higher ratio indicates that the company is generating more sales with less working capital, which is generally favorable. Unifirst Corporation's recent ratios suggest an improvement in this aspect over the years, although some fluctuations have been observed. Further analysis would be necessary to understand the underlying reasons for these fluctuations and to assess the overall effectiveness of the company's working capital management.
Peer comparison
Aug 31, 2024