Unifirst Corporation (UNF)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,569,980 | 2,427,970 | 2,381,060 | 2,199,030 | 2,047,320 |
| Operating ROA | 5.20% | 5.53% | 8.22% | 7.85% | 11.33% |
August 26, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $133,603K ÷ $2,569,980K
= 5.20%
To analyze Unifirst Corp.'s operating return on assets (operating ROA), we can see that the ratio has experienced fluctuations over the past five years.
In 2023, the operating ROA was 5.20%, a decrease from 5.53% in 2022. This indicates a lower ability to generate operating income from its assets compared to the previous year. The operating ROA has been on a declining trend since 2021, when it was 8.22%, and the decrease continued from 2019 when it was at a high of 11.33%.
The decreasing trend in operating ROA could suggest declining operating efficiency or decreasing profitability relative to the company's asset base over the years. It may be important for Unifirst Corp. to assess its operational strategies and consider potential improvements to enhance the utilization of its assets to generate operating income.
Peer comparison
Aug 26, 2023