Unifirst Corporation (UNF)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 349,410 | 335,322 |
| Short-term investments | US$ in thousands | 11,392 | 11,394 | 10,157 | 101,000 | 107,000 | 0 | — | 425,887 | 478,061 | 0 | 535,005 | 509,563 | 473,010 | 0 | 421,253 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 174,273 | 180,182 |
| Cash ratio | 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 | 2.00 | 1.86 |
February 24, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($90,538K
+ $11,392K)
÷ $262,864K
= 0.39
The cash ratio of Unifirst Corporation has fluctuated over the past few years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at the data provided, we see that the cash ratio has varied significantly, ranging from as low as 0.03 to as high as 4.51. In general, the company seems to have maintained a healthy cash position, with the ratio consistently above 1 in recent years.
The ratio was notably high in February 2022, May 2022, and August 2022, signaling a strong ability to cover short-term liabilities with cash on hand during those periods. However, there was a sharp decrease in the cash ratio in November 2022 and February 2023, which may indicate a temporary dip in the company's liquidity position.
It is important to note the substantial increase in the cash ratio in the most recent data point of February 2024. This significant increase suggests that the company has improved its cash position significantly, potentially due to increased cash reserves or reduced short-term liabilities.
Overall, the cash ratio analysis indicates that Unifirst Corporation has generally maintained a healthy level of liquidity over the years, with some fluctuations that may require further investigation to understand the underlying reasons behind the changes in the company's cash position.
Peer comparison
Feb 24, 2024