Unifirst Corporation (UNF)
Quick ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 161,571 | 79,443 | 376,399 | 512,868 | 474,838 |
| Short-term investments | US$ in thousands | 13,500 | 10,200 | 0 | 0 | 0 |
| Receivables | US$ in thousands | 278,851 | 279,078 | 249,198 | 208,331 | 190,916 |
| Total current liabilities | US$ in thousands | 281,437 | 267,229 | 243,745 | 254,670 | 210,096 |
| Quick ratio | 1.61 | 1.38 | 2.57 | 2.83 | 3.17 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($161,571K
+ $13,500K
+ $278,851K)
÷ $281,437K
= 1.61
The quick ratio of Unifirst Corporation has shown a fluctuating trend over the past five years. In 2024, the quick ratio stands at 1.61, indicating that the company has $1.61 in liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year, where the quick ratio was 1.38.
Comparing the current ratio to the ratios of the previous years, we observe that the quick ratio was higher in 2022 at 2.57 and even higher in 2021 at 2.83, indicating a stronger ability to cover short-term obligations with liquid assets during those periods. The most notable quick ratio was recorded in 2020 at 3.17, suggesting a robust liquidity position.
Overall, the trend in the quick ratio reflects some fluctuations in the company's liquidity position over the years, with a general downward trend from 2020 to 2023 followed by a slight improvement in 2024. The company may need to closely monitor its ability to cover short-term obligations with liquid assets to ensure financial stability and resilience in the face of potential economic uncertainties.
Peer comparison
Aug 31, 2024