Unifirst Corporation (UNF)
Current ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 915,676 | 840,118 | 1,063,890 | 1,103,790 | 969,334 |
| Total current liabilities | US$ in thousands | 281,437 | 267,229 | 243,745 | 254,670 | 210,096 |
| Current ratio | 3.25 | 3.14 | 4.36 | 4.33 | 4.61 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $915,676K ÷ $281,437K
= 3.25
The current ratio of Unifirst Corporation has exhibited fluctuation over the past five years, ranging from 3.14 to 4.61. The current ratio was 3.25 as of August 31, 2024, indicating that the company had $3.25 in current assets for every $1 in current liabilities.
Comparing this to the previous years, the current ratio has generally been above 3, reflecting a healthy liquidity position for the company. A current ratio above 1 suggests that Unifirst Corporation has sufficient short-term assets to cover its current liabilities.
It is important to note that a higher current ratio indicates a stronger liquidity position, as it implies that the company has a greater ability to meet its short-term obligations. However, a very high current ratio may also indicate inefficiency in managing the company's assets and liabilities.
Overall, Unifirst Corporation's current ratio of 3.25 as of August 31, 2024, is a positive indicator of the company's liquidity and its ability to meet its short-term financial obligations.
Peer comparison
Aug 31, 2024