Unifirst Corporation (UNF)

Cash conversion cycle

Aug 31, 2024 Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020
Days of inventory on hand (DOH) days 36.25 36.55 42.32 45.92 33.30
Days of sales outstanding (DSO) days 41.80 45.48 45.40 41.58 38.49
Number of days of payables days 21.37 22.85 22.95 26.02 20.06
Cash conversion cycle days 56.68 59.18 64.76 61.48 51.72

August 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.25 + 41.80 – 21.37
= 56.68

The cash conversion cycle of Unifirst Corporation has shown some fluctuations over the past five years. In the most recent fiscal year ending August 31, 2024, the company's cash conversion cycle was 56.68 days, which represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Comparing this to the previous years, we can see that the cash conversion cycle was 59.18 days in 2023, 64.76 days in 2022, 61.48 days in 2021, and 51.72 days in 2020. The downward trend from 2022 to 2020 suggests that Unifirst Corporation has been able to improve its efficiency in managing its working capital and converting its assets into cash.

However, the slight increase in the cash conversion cycle in 2024 compared to 2023 may indicate that the company faced challenges in optimizing its working capital management during that period. It is important for Unifirst Corporation to continue monitoring its cash conversion cycle to ensure effective cash flow management and operational efficiency.


Peer comparison

Aug 31, 2024

Company name
Symbol
Cash conversion cycle
Unifirst Corporation
UNF
56.68
H&R Block Inc
HRB
7.14
Service Corporation International
SCI
12.80
Yelp Inc
YELP
34.84