Unifirst Corporation (UNF)
Cash ratio
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 79,443 | 376,399 | 512,868 | 474,838 | 4,900 |
| Short-term investments | US$ in thousands | 10,157 | 0 | 0 | 0 | 380,441 |
| Total current liabilities | US$ in thousands | 267,229 | 243,745 | 254,670 | 210,096 | 189,844 |
| Cash ratio | 0.34 | 1.54 | 2.01 | 2.26 | 2.03 |
August 26, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($79,443K
+ $10,157K)
÷ $267,229K
= 0.34
The cash ratio for Unifirst Corp. has shown a declining trend over the past five years, decreasing from 3.21 in 2019 to 1.54 in 2023. This indicates that the company's ability to cover its current liabilities with its cash and cash equivalents has weakened over this period. A declining cash ratio may signal potential liquidity challenges, as the company may have insufficient cash to meet its short-term obligations. It is important for stakeholders to monitor this trend and assess the company's ability to generate sufficient cash flow or improve its liquidity position.
Peer comparison
Aug 26, 2023