Unifirst Corporation (UNF)
Current ratio
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 840,118 | 1,063,890 | 1,103,790 | 969,334 | 913,791 |
| Total current liabilities | US$ in thousands | 267,229 | 243,745 | 254,670 | 210,096 | 189,844 |
| Current ratio | 3.14 | 4.36 | 4.33 | 4.61 | 4.81 |
August 26, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $840,118K ÷ $267,229K
= 3.14
The current ratio of Unifirst Corp. has exhibited a declining trend over the past five years, decreasing from 4.81 in 2019 to 3.14 in 2023. This indicates a reduction in the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferred as it signifies a stronger liquidity position, allowing the company to more comfortably cover its short-term liabilities.
The decreasing current ratio may raise concerns about Unifirst Corp.'s ability to efficiently manage its working capital and meet its short-term financial obligations. It would be prudent for stakeholders to closely monitor the company's liquidity position and assess the effectiveness of its working capital management in light of this declining trend.
Peer comparison
Aug 26, 2023