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