Unifirst Corporation (UNF)
Working capital turnover
| Aug 31, 2024 | May 25, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,434,673 | 2,424,124 | 2,365,112 | 2,318,618 | 2,239,785 | 2,119,703 | 2,061,428 | 2,003,673 | 1,951,889 | 1,904,995 | 1,868,175 | 1,828,779 | 1,791,680 | 1,773,258 | 1,789,406 | 1,809,749 | 1,860,727 | 1,870,168 | 1,842,887 | 1,815,402 |
| Total current assets | US$ in thousands | 915,676 | 884,389 | 864,478 | 858,938 | 840,118 | 1,067,280 | 1,067,610 | 1,063,890 | 1,068,880 | 1,078,870 | 1,111,650 | 1,103,790 | 1,070,150 | 1,023,460 | 986,824 | 969,334 | 925,512 | 923,822 | 902,457 | 913,791 |
| Total current liabilities | US$ in thousands | 281,437 | 269,819 | 262,864 | 258,785 | 267,229 | 232,136 | 242,771 | 243,745 | 246,721 | 250,051 | 246,013 | 254,670 | 238,284 | 226,131 | 211,692 | 210,096 | 196,234 | 201,395 | 197,632 | 189,844 |
| Working capital turnover | 3.84 | 3.94 | 3.93 | 3.86 | 3.91 | 2.54 | 2.50 | 2.44 | 2.37 | 2.30 | 2.16 | 2.15 | 2.15 | 2.22 | 2.31 | 2.38 | 2.55 | 2.59 | 2.61 | 2.51 |
August 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,434,673K ÷ ($915,676K – $281,437K)
= 3.84
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Looking at the data provided for Unifirst Corporation, we can see fluctuations in the working capital turnover ratio over time.
The working capital turnover ratio for Unifirst Corporation has shown a general upward trend from August 2019 to August 2024, indicating an improvement in the efficiency of utilizing working capital. The ratio ranged from a low of 2.15 in August 2021 to a high of 3.94 in May 2024, with an average of approximately 2.75 over the period.
A higher working capital turnover ratio signifies that Unifirst Corporation is effectively using its working capital to support sales and operations. This could be attributed to better inventory management, efficient accounts receivable collection, or optimized accounts payable processes.
However, it is also essential to consider the industry benchmarks and compare the company's performance with its peers to gain a clearer perspective on its efficiency in managing working capital. Additionally, analyzing the components of working capital, such as receivables, payables, and inventory turnover, can provide further insights into the company's liquidity and operational efficiency.
Peer comparison
Aug 31, 2024