Unifirst Corporation (UNF)
Return on total capital
| Aug 31, 2024 | May 25, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 183,578 | 165,754 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,108,510 | 2,075,610 | 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 |
| Return on total capital | 8.71% | 7.99% | 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% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $183,578K ÷ ($—K + $2,108,510K)
= 8.71%
The return on total capital for Unifirst Corporation has shown fluctuations over the past few years, ranging from a low of 6.73% in February 2024 to a peak of 14.42% in February 2020. The return on total capital reflects the company's ability to generate profits from both debt and equity sources of capital.
Overall, the trend in the return on total capital for Unifirst Corporation has been relatively positive, with an average return of approximately 9% over the past few years. The company has shown a consistent ability to generate returns on the capital invested in its operations, with some years exhibiting stronger performance than others.
It is important for investors and analysts to monitor the return on total capital as it provides insights into the efficiency and effectiveness of the company's capital allocation strategies. A higher return on total capital indicates that the company is able to generate more profits from the capital it has deployed, which is a positive sign for the company’s financial health and long-term sustainability.
Peer comparison
Aug 31, 2024