Unifirst Corporation (UNF)
Cash ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 161,571 | 79,443 | 376,399 | 512,868 | 474,838 |
| Short-term investments | US$ in thousands | 13,500 | 10,200 | 0 | 0 | 0 |
| Total current liabilities | US$ in thousands | 281,437 | 267,229 | 243,745 | 254,670 | 210,096 |
| Cash ratio | 0.62 | 0.34 | 1.54 | 2.01 | 2.26 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($161,571K
+ $13,500K)
÷ $281,437K
= 0.62
The cash ratio of Unifirst Corporation has shown a fluctuating trend over the past five years. As of August 31, 2024, the cash ratio stands at 0.62, indicating that the company has $0.62 in liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year where the cash ratio was 0.34.
Comparing the current ratio to previous years, it is evident that Unifirst Corporation had a higher cash ratio in the years 2021, 2022, and 2020, with ratios of 2.01, 1.54, and 2.26 respectively. This suggests that the company had a stronger liquidity position in those years, with a higher proportion of cash or cash equivalents relative to its current liabilities.
The decrease in the cash ratio in 2024 compared to the prior year may indicate a potential liquidity challenge for Unifirst Corporation. It is essential for the company to closely monitor its cash position and ensure it has adequate liquid assets to meet its short-term obligations. Further analysis of the company's cash management practices and strategies to improve liquidity may be needed to address this decline in the cash ratio.
Peer comparison
Aug 31, 2024