Unifirst Corporation (UNF)

Liquidity ratios

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
Current ratio 3.29 3.32 3.14 4.60 4.40 4.36 4.33 4.31 4.52 4.33 4.49 4.53 4.66 4.61 4.72 4.59 4.57 4.81 4.95 4.71
Quick ratio 1.50 1.50 1.38 2.68 2.57 2.57 2.64 4.36 4.84 2.83 5.33 5.41 5.46 3.17 5.31 3.01 2.91 1.10 3.17 2.99
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

Unifirst Corporation's liquidity ratios indicate strong short-term financial health over the analyzed periods. The current ratio, which measures the firm's ability to cover short-term obligations with current assets, remained consistently above 3, with a peak of 4.95 in February 2019. This implies a robust ability to meet current liabilities using current assets.

The quick ratio, a more stringent measure of liquidity excluding inventory, also shows a healthy trend, consistently above 1. A peak quick ratio of 5.41 in May 2021 indicates a high level of liquidity and ability to meet short-term obligations without relying on inventory liquidation.

The cash ratio, which evaluates the company's ability to cover current liabilities with cash and cash equivalents, peaked at 4.51 in February 2021. This demonstrates Unifirst's strong cash position relative to immediate obligations, allowing it to meet short-term liabilities comfortably.

Overall, the liquidity ratios of Unifirst Corporation reflect a consistently strong liquidity position, with ample current assets to cover short-term obligations across the reported periods.


Additional liquidity measure

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 conversion cycle days 61.76 62.00 59.18 66.02 64.04 64.76 65.80 68.46 70.53 61.48 57.28 57.87 56.85 51.74 53.55 48.35 52.15 48.28 51.14 51.28

The cash conversion cycle of Unifirst Corporation is a metric that provides insight into the efficiency of the company's working capital management. The cash conversion cycle measures the time it takes for a company to convert its investments in raw materials into cash received from sales of finished goods.

Over the past 20 reporting periods, Unifirst Corporation has had fluctuations in its cash conversion cycle, ranging from 48.35 days to 70.53 days. A shorter cash conversion cycle indicates that the company is able to efficiently convert its investments into cash, while a longer cycle suggests that the company may be experiencing delays in receiving cash from sales.

In the most recent reporting period, the cash conversion cycle stood at 61.76 days, showing a slight improvement compared to the previous period. This improvement could signal more effective management of inventory, accounts receivable, and accounts payable, leading to a quicker conversion of investments into cash.

Overall, it is important for Unifirst Corporation to consistently monitor and optimize its cash conversion cycle to ensure efficient working capital management, improve cash flow, and maximize profitability.