Unifirst Corporation (UNF)
Profitability ratios
Return on sales
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.86% | 34.80% | 37.59% | 35.66% | 37.35% |
| Operating profit margin | 5.97% | 6.71% | 10.71% | 9.54% | 12.76% |
| Pretax margin | 6.20% | 6.70% | 10.77% | 9.83% | 13.08% |
| Net profit margin | 4.63% | 5.16% | 8.26% | 7.50% | 9.85% |
Unifirst Corp.'s profitability ratios have shown a declining trend over the past five years. The gross profit margin, which represents the portion of revenue that exceeds the cost of goods sold, has decreased from 37.51% in 2021 to 33.66% in 2023. This indicates a decrease in the company's ability to generate profit from its core operations.
Similarly, the operating profit margin, which reflects the percentage of revenue remaining after accounting for operating expenses, has declined from 10.72% in 2021 to 5.98% in 2023. This suggests that the company's profitability from its core business activities has weakened.
The pretax margin, a measure of the company's operational efficiency and cost management, has also decreased from 10.78% in 2021 to 6.22% in 2023, indicating a reduction in the company's ability to generate profit before accounting for taxes.
Finally, the net profit margin, which represents the percentage of revenue that remains as net income after all expenses have been deducted, has decreased from 8.27% in 2021 to 4.64% in 2023. This highlights a decline in the company's overall profitability.
These declining profitability ratios may raise concerns about Unifirst Corp.'s ability to effectively manage costs and generate profits from its operations. Further analysis of the company's cost structure and revenue drivers may be necessary to understand the underlying factors contributing to this deteriorating trend in profitability.
Return on investment
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.20% | 5.53% | 8.22% | 7.85% | 11.33% |
| Return on assets (ROA) | 4.03% | 4.26% | 6.35% | 6.17% | 8.75% |
| Return on total capital | 6.67% | 7.01% | 10.46% | 9.92% | 14.14% |
| Return on equity (ROE) | 5.17% | 5.40% | 8.07% | 7.80% | 10.91% |
Unifirst Corp.'s profitability ratios indicate a decline in return on assets (ROA) and return on equity (ROE) over the past five years. The operating return on assets (Operating ROA) has also seen a downward trend. This suggests that the company's ability to generate profits from its assets and equity has weakened over time. The return on total capital has followed a similar pattern, indicating that the company's overall efficiency in generating returns has diminished. It would be prudent for stakeholders to further investigate the factors contributing to these declines and assess potential strategies to improve efficiency and profitability.