Unifirst Corporation (UNF)
Debt-to-assets ratio
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 2,569,980 | 2,427,970 | 2,381,060 | 2,199,030 | 2,047,320 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 26, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $2,569,980K
= 0.00
The debt-to-assets ratio for Unifirst Corp. has remained consistent at 0.00 for the past five years, from August 26, 2023, to August 31, 2019. This indicates that the company has not utilized debt financing to support its operations, and its assets have been primarily financed through equity.
A debt-to-assets ratio of 0.00 suggests that the company has a low or negligible level of debt in relation to its total assets. This could be viewed as a positive indicator of financial stability and solvency, as it signifies that the company is not reliant on borrowed funds to support its operations.
However, while a low debt-to-assets ratio may indicate conservative financial management, it may also suggest underutilization of leverage that could potentially enhance return on equity. It is important to consider the industry and market conditions in evaluating the significance of this ratio.
In summary, Unifirst Corp.'s consistent debt-to-assets ratio of 0.00 over the past five years reflects a conservative approach to capital structure, with a minimal reliance on debt financing to support its asset base.
Peer comparison
Aug 26, 2023