Unifirst Corporation (UNF)
Cash ratio
| Aug 31, 2024 | May 25, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 161,571 | 112,246 | 90,538 | 77,380 | 79,443 | 244,098 | 244,174 | 376,399 | -410,595 | 425,887 | 478,061 | 512,868 | 535,005 | 509,563 | 473,010 | 474,838 | 421,253 | 395,323 | 356,588 | 4,900 |
| Short-term investments | US$ in thousands | 13,500 | 13,186 | 11,392 | 11,394 | 10,200 | 101,000 | 107,000 | 0 | 821,190 | 425,887 | 478,061 | 0 | 535,005 | 509,563 | 473,010 | 0 | 421,253 | — | — | — |
| Total current liabilities | US$ in thousands | 281,437 | 269,819 | 262,864 | 258,785 | 267,229 | 232,136 | 242,771 | 243,745 | 246,721 | 250,051 | 246,013 | 254,670 | 238,284 | 226,131 | 211,692 | 210,096 | 196,234 | 201,395 | 197,632 | 189,844 |
| Cash ratio | 0.62 | 0.46 | 0.39 | 0.34 | 0.34 | 1.49 | 1.45 | 1.54 | 1.66 | 3.41 | 3.89 | 2.01 | 4.49 | 4.51 | 4.47 | 2.26 | 4.29 | 1.96 | 1.80 | 0.03 |
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 exhibited significant fluctuations over the past couple of years. The ratio stood at 0.62 as of August 31, 2024, indicating that the company had $0.62 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous quarter-end ratios, with a notable increase from 0.46 in May 25, 2024, to 0.62 in August 31, 2024.
It is important to note that the cash ratio has generally been above 1 in recent years, indicating that the company has had more than enough cash on hand to meet its short-term obligations. However, there were instances where the ratio dipped below 1, such as in November 2019 when it was at 0.03. This could be a cause for concern as it may suggest a potential liquidity issue during that period.
The trend in the cash ratio over the past few quarters shows some fluctuations but generally indicates a healthy liquidity position for Unifirst Corporation. The significant increase in the cash ratio from 0.34 in February 26, 2022, to 3.41 in February 26, 2022, and subsequently remaining above 1 in the following quarters, signifies an improved ability to cover short-term liabilities with cash on hand.
Overall, the recent cash ratio of Unifirst Corporation shows a firm liquidity position, with the company having ample cash reserves to meet its short-term financial obligations.
Peer comparison
Aug 31, 2024