Unifirst Corporation (UNF)
Cash conversion cycle
| 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 | May 25, 2019 | Feb 23, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.79 | 35.47 | 36.55 | 39.47 | 38.77 | 42.32 | 43.99 | 48.48 | 49.09 | 45.92 | 39.12 | 35.46 | 33.13 | 33.30 | 31.93 | 29.57 | 31.63 | 32.33 | 31.24 | 31.86 |
| Days of sales outstanding (DSO) | days | 45.03 | 47.15 | 45.48 | 47.62 | 48.31 | 45.40 | 45.10 | 45.45 | 45.64 | 41.58 | 40.77 | 42.00 | 42.82 | 38.50 | 39.25 | 40.96 | 43.15 | 40.91 | 41.94 | 42.59 |
| Number of days of payables | days | 20.06 | 20.62 | 22.85 | 21.07 | 23.04 | 22.95 | 23.29 | 25.47 | 24.19 | 26.02 | 22.61 | 19.60 | 19.11 | 20.06 | 17.63 | 22.18 | 22.64 | 24.97 | 22.05 | 23.17 |
| Cash conversion cycle | days | 61.76 | 62.00 | 59.18 | 66.02 | 64.04 | 64.76 | 65.80 | 68.46 | 70.53 | 61.48 | 57.28 | 57.87 | 56.85 | 51.74 | 53.55 | 48.35 | 52.15 | 48.28 | 51.14 | 51.28 |
February 24, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.79 + 45.03 – 20.06
= 61.76
The cash conversion cycle of Unifirst Corporation has shown some fluctuations over the past few years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
From the data provided, we can see that the cash conversion cycle has ranged from a low of 48.35 days to a high of 70.53 days over the past few years. A lower cash conversion cycle indicates that the company is more efficient in managing its working capital and generating cash flows. On the other hand, a higher cycle suggests that the company may be experiencing delays in converting its investments into cash.
Overall, Unifirst Corporation's cash conversion cycle has shown some variability, with periods of both shorter and longer cycles. It would be important for the company to closely monitor and manage its inventory levels, accounts receivable, and accounts payable in order to keep the cash conversion cycle at an optimal level and ensure efficient working capital management.
Peer comparison
Feb 24, 2024