Unifirst Corporation (UNF)
Return on total capital
| Feb 24, 2024 | Nov 25, 2023 | Aug 26, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 25, 2019 | Feb 23, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 138,014 | 153,489 | 133,603 | 131,076 | 132,979 | 134,351 | 146,031 | 166,493 | 184,573 | 195,825 | 191,693 | 165,242 | 168,676 | 172,729 | 190,854 | 223,358 | 241,677 | 232,008 | 214,510 | 201,385 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,049,680 | 2,040,170 | 2,003,960 | 1,955,090 | 1,941,970 | 1,915,870 | 1,904,010 | 1,898,980 | 1,894,900 | 1,872,950 | 1,845,200 | 1,801,110 | 1,773,350 | 1,741,130 | 1,708,100 | 1,701,440 | 1,676,010 | 1,641,230 | 1,609,700 | 1,580,790 |
| Return on total capital | 6.73% | 7.52% | 6.67% | 6.70% | 6.85% | 7.01% | 7.67% | 8.77% | 9.74% | 10.46% | 10.39% | 9.17% | 9.51% | 9.92% | 11.17% | 13.13% | 14.42% | 14.14% | 13.33% | 12.74% |
February 24, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $138,014K ÷ ($—K + $2,049,680K)
= 6.73%
The return on total capital for Unifirst Corporation has shown a fluctuating trend over the past few quarters. The ratio stood at 6.73% as of Feb 24, 2024, which was a slight decrease from the previous quarter's figure of 7.52%. Looking further back, there was a relatively stable performance in the range of 6.67% to 7.01% from Aug 26, 2023, to Aug 27, 2022.
However, there was a notable improvement in the return on total capital between Feb 26, 2022, and May 30, 2020, with the ratio steadily increasing from 8.77% to 13.13%. This period saw a significant growth in the company's ability to generate returns relative to its total capital.
The highest return on total capital was recorded on Feb 29, 2020, at 13.13%, followed by 14.42% on Nov 30, 2019. These figures indicate a strong performance in utilizing the company's total capital effectively to generate profits.
Overall, the return on total capital for Unifirst Corporation has shown variability but has demonstrated an overall positive trend with occasional peaks in performance. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to sustain and build upon these favorable returns in the future.
Peer comparison
Feb 24, 2024