Unifirst Corporation (UNF)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.11% | 33.86% | 34.80% | 37.59% | 35.66% |
| Operating profit margin | 7.54% | 5.97% | 6.71% | 10.71% | 9.54% |
| Pretax margin | 7.78% | 6.20% | 6.70% | 10.77% | 9.83% |
| Net profit margin | 5.98% | 4.63% | 5.16% | 8.26% | 7.50% |
Unifirst Corporation's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the company's ability to generate profit from its revenue after accounting for the cost of goods sold, has ranged from 33.86% to 37.59%. This ratio increased to 35.11% in 2024, reflecting an improvement in managing production costs.
The operating profit margin, which measures the company's ability to generate profit from its core operations, has varied from 5.97% to 10.71%. In 2024, it stood at 7.54%, indicating a moderate profitability level compared to the previous year.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, has fluctuated between 6.20% and 10.77% over the period under consideration. In 2024, it reached 7.78%, showing a slight increase from the prior year.
The net profit margin, which reflects the company's overall profitability after all expenses have been deducted, has ranged from 4.63% to 8.26%. The 2024 net profit margin of 5.98% is slightly higher than the previous year, indicating improved bottom-line performance.
Overall, Unifirst Corporation's profitability ratios demonstrate a mix of challenges and improvements in managing costs and generating profit across its operations over the past five years. Continued monitoring of these ratios will be essential to assess the company's financial health and performance in the future.
Return on investment
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.81% | 5.20% | 5.53% | 8.22% | 7.85% |
| Return on assets (ROA) | 5.40% | 4.03% | 4.26% | 6.35% | 6.17% |
| Return on total capital | 8.71% | 6.67% | 7.01% | 10.46% | 9.92% |
| Return on equity (ROE) | 6.90% | 5.17% | 5.40% | 8.07% | 7.80% |
Unifirst Corporation has shown relatively consistent profitability over the past five years based on various key ratios. The Operating return on assets (Operating ROA) has ranged from 5.20% to 8.22%, with a notable increase in 2021 followed by a slight dip in 2022 and then a slight increase again in 2023 and 2024. This indicates the company's ability to generate operating profits relative to its total assets.
The Return on assets (ROA) has also shown a similar trend, ranging from 4.03% to 6.35% over the same period. The ROA takes into account both operating and non-operating income, providing a broader perspective on the company's overall profitability.
The Return on total capital, which measures the company's ability to generate returns for all sources of capital, has ranged from 6.67% to 10.46%, with the highest return recorded in 2021. This indicates the efficiency of Unifirst Corporation in utilizing its total capital to generate profits.
Lastly, the Return on equity (ROE) has ranged from 5.17% to 8.07% over the five-year period, reflecting the company's ability to generate returns for its shareholders. Unifirst Corporation's ROE has been relatively stable, with a slight increase in 2021 followed by modest fluctuations in subsequent years.
Overall, Unifirst Corporation has demonstrated consistent profitability over the years as indicated by these key profitability ratios, showcasing its efficiency in generating profits relative to its assets, capital, and equity.