Unifirst Corporation (UNF)
Return on total capital
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 183,578 | 133,603 | 134,351 | 195,825 | 172,729 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,108,510 | 2,003,960 | 1,915,870 | 1,872,950 | 1,741,130 |
| Return on total capital | 8.71% | 6.67% | 7.01% | 10.46% | 9.92% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $183,578K ÷ ($—K + $2,108,510K)
= 8.71%
Return on total capital is a key financial ratio that assesses a company's ability to generate profits from the total capital employed in its operations. For Unifirst Corporation, the return on total capital has shown variability over the past five years. In 2024, the return on total capital was 8.71%, representing an improvement from the previous year's 6.67% but lower than the 10.46% recorded in 2021. This indicates that the company is earning $8.71 in profits for every $100 of total capital invested.
Despite the fluctuations observed, Unifirst Corporation has generally maintained a satisfactory return on total capital above 6% over the past five years. Investors and stakeholders may consider the trend in return on total capital as a measure of the company's efficiency in utilizing its capital to generate profits. Additional analysis of the company's financial performance and operational strategies would provide further insights into the factors influencing these fluctuations in return on total capital.
Peer comparison
Aug 31, 2024