Unifirst Corporation (UNF)
Operating profit margin
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 133,603 | 134,351 | 195,825 | 172,729 | 232,008 |
| Revenue | US$ in thousands | 2,239,780 | 2,003,670 | 1,828,780 | 1,810,540 | 1,818,460 |
| Operating profit margin | 5.97% | 6.71% | 10.71% | 9.54% | 12.76% |
August 26, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $133,603K ÷ $2,239,780K
= 5.97%
The operating profit margin of Unifirst Corp. has shown a declining trend over the past five years. In the most recent fiscal year as of August 26, 2023, the operating profit margin stood at 5.98%, representing a decrease from 6.71% in the previous year and a substantial decline from 12.82% in August 31, 2019.
This downward trend indicates that the company's ability to generate profit from its core business operations has weakened over time. It may be worth investigating the reasons behind this decline, such as increasing operating expenses, pricing pressures, or changes in the company's sales mix.
A declining operating profit margin can negatively impact the overall financial performance and sustainability of the company. It suggests that Unifirst Corp. may be facing challenges in effectively managing its operating costs and maintaining profitability. Management may need to consider implementing strategies to improve operational efficiency and cost control in order to reverse this trend and enhance the company's financial health.
Peer comparison
Aug 26, 2023