Unifirst Corporation (UNF)
Quick ratio
| 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 | US$ in thousands | 161,571 | 112,246 | 90,538 | 77,380 | 79,443 | 244,098 | 244,174 | 376,399 | -410,595 | 425,887 | 478,061 | 512,868 | 535,005 | 509,563 | 473,010 | 474,838 | 421,253 | 395,323 | 356,588 | 4,900 |
| Short-term investments | US$ in thousands | 13,500 | 13,186 | 11,392 | 11,394 | 10,200 | 101,000 | 107,000 | 0 | 821,190 | 425,887 | 478,061 | 0 | 535,005 | 509,563 | 473,010 | 0 | 421,253 | — | — | — |
| Receivables | US$ in thousands | 278,851 | 284,363 | 291,784 | 299,494 | 279,078 | 276,560 | 272,836 | 249,198 | 241,160 | 237,237 | 233,576 | 208,331 | 200,136 | 204,068 | 209,916 | 190,916 | 200,110 | 209,878 | 217,884 | 203,457 |
| Total current liabilities | US$ in thousands | 281,437 | 269,819 | 262,864 | 258,785 | 267,229 | 232,136 | 242,771 | 243,745 | 246,721 | 250,051 | 246,013 | 254,670 | 238,284 | 226,131 | 211,692 | 210,096 | 196,234 | 201,395 | 197,632 | 189,844 |
| 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 |
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 exhibited some fluctuations over the periods analyzed. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
From November 2019 to February 2020, the quick ratio was low at 1.10, indicating that the company had a limited ability to cover its short-term liabilities without relying on inventory. However, from May 2020 to November 2021, the quick ratio increased significantly, peaking at 4.84 in February 2021 and remaining above 2.5 in subsequent periods. During this time, the company had a strong ability to meet its short-term obligations using its liquid assets.
In more recent periods, the quick ratio has decreased from its peak, with fluctuations around the 1.50 to 1.61 range. While the quick ratio remains above 1, indicating the company can cover its short-term liabilities, the decreasing trend suggests a slight decline in liquidity compared to previous periods.
Overall, the analysis of Unifirst Corporation's quick ratio reveals fluctuations in its liquidity position over time, with periods of strong liquidity followed by some moderation in recent periods. It is important for the company to monitor its liquidity closely to ensure it can meet its short-term obligations efficiently.
Peer comparison
Aug 31, 2024