Unifirst Corporation (UNF)
Return on assets (ROA)
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 103,674 | 103,404 | 151,111 | 135,770 | 179,134 |
| Total assets | US$ in thousands | 2,569,980 | 2,427,970 | 2,381,060 | 2,199,030 | 2,047,320 |
| ROA | 4.03% | 4.26% | 6.35% | 6.17% | 8.75% |
August 26, 2023 calculation
ROA = Net income ÷ Total assets
= $103,674K ÷ $2,569,980K
= 4.03%
To analyze Unifirst Corp.'s return on assets (ROA), we'll examine the trend of ROA over the past five years. ROA measures a company's ability to generate profits from its assets.
Unifirst Corp.'s ROA has shown a declining trend over the past five years, decreasing from 8.75% in 2019 to 4.03% in 2023. This implies that the company's ability to generate profits from its assets has decreased over the period.
The declining trend in ROA could be due to several factors, such as increased asset base without a proportional increase in profits, inefficient asset utilization, or declining profitability.
It is important for Unifirst Corp. to address the factors contributing to the decline in ROA and take measures to improve asset efficiency and profitability in order to enhance overall financial performance.
Peer comparison
Aug 26, 2023