Unifirst Corporation (UNF)
Debt-to-equity ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,108,510K
= 0.00
The debt-to-equity ratio of Unifirst Corporation has consistently been at 0.00 over the past five years, indicating that the company has not utilized any debt financing to support its operations relative to the shareholder's equity. This suggests that Unifirst has relied primarily on equity funding, which can be considered a conservative financial approach. A debt-to-equity ratio of 0.00 signifies a low financial risk, as there is no debt contributing to the company's capital structure. However, it is important to note that a zero debt-to-equity ratio may also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders through strategic financial leverage. Additional analysis of the company's capital structure and financial strategy would provide more insights into the rationale behind maintaining such a low debt-to-equity ratio.
Peer comparison
Aug 31, 2024