Unifirst Corporation (UNF)
Quick ratio
| 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 | US$ in thousands | 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 | 349,410 | 335,322 |
| Short-term investments | US$ in thousands | 11,392 | 11,394 | 10,157 | 101,000 | 107,000 | 0 | — | 425,887 | 478,061 | 0 | 535,005 | 509,563 | 473,010 | 0 | 421,253 | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 203,385 | 203,163 |
| Total current liabilities | US$ in thousands | 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 | 174,273 | 180,182 |
| 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 |
February 24, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($90,538K
+ $11,392K
+ $291,784K)
÷ $262,864K
= 1.50
The quick ratio of Unifirst Corporation has shown some fluctuations over the past few years. From November 2018 to November 2020, the quick ratio remained relatively stable, ranging between 1.10 and 2.91. However, in the most recent periods, the quick ratio has seen a significant increase, reaching a high of 5.46 in February 2021 and staying above 2.57 since then.
A quick ratio above 1 indicates that Unifirst Corporation has sufficient liquid assets to cover its current liabilities, with a ratio above 2 considered healthy. The quick ratio provides a more stringent measure of liquidity than the current ratio, as it excludes inventory from current assets.
The consistent improvement in the quick ratio from February 2021 onwards suggests that Unifirst Corporation has been effectively managing its liquidity position and maintaining a healthy level of liquid assets relative to its current liabilities. This trend indicates a strong financial position and the ability to meet short-term obligations without relying heavily on inventory.
Overall, the increasing trend in Unifirst Corporation's quick ratio signifies a positive liquidity position, enhancing the company's ability to weather any short-term financial challenges.
Peer comparison
Feb 24, 2024