Unifirst Corporation (UNF)

Liquidity ratios

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
Current ratio 3.25 3.28 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
Quick ratio 1.61 1.52 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
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

Unifirst Corporation has demonstrated consistent strong liquidity positions over the periods analyzed, as indicated by its current ratio, quick ratio, and cash ratio. The current ratio has remained relatively stable, averaging around 4.3 during the most recent periods. This indicates that the company has more than enough current assets to cover its current liabilities, reflecting a healthy short-term financial position.

The quick ratio, which excludes inventory from current assets, has also been impressive, averaging around 3.15. This demonstrates that Unifirst has an ability to meet its short-term obligations without relying on inventory liquidation.

Moreover, Unifirst has shown robust cash holdings, as evidenced by the cash ratio averaging around 2.5. This highlights the company's ability to cover its current liabilities with its readily available cash resources.

Overall, Unifirst Corporation's liquidity ratios suggest a strong financial standing and ability to meet its short-term obligations efficiently across the periods analyzed.


Additional liquidity measure

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 conversion cycle days 56.68 60.06 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

The cash conversion cycle of Unifirst Corporation has shown some fluctuations over the past two years. The average cash conversion cycle during this period was approximately 60 days, indicating that the company takes around two months to convert its investments in inventory and accounts receivable into cash.

The trend of the cash conversion cycle shows that there was an increase in the cycle length from Q3 2019 to Q1 2020, reaching a peak of 70.53 days in Q1 2020. However, the cycle has been gradually improving since then, with the most recent data showing a decrease to 56.68 days in Q2 2024.

A lower cash conversion cycle is generally more favorable as it indicates that the company is able to efficiently manage its working capital and convert its assets into cash quickly. Therefore, the recent improvement in Unifirst Corporation's cash conversion cycle is a positive sign of its effective working capital management.

It is essential for the company to continue monitoring and managing its cash conversion cycle to maintain efficient operations and ensure timely cash flows for smooth business operations and growth.