Unifirst Corporation (UNF)
Financial leverage ratio
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,696,410 | 2,569,980 | 2,427,970 | 2,381,060 | 2,199,030 |
| Total stockholders’ equity | US$ in thousands | 2,108,510 | 2,003,960 | 1,915,870 | 1,872,950 | 1,741,130 |
| Financial leverage ratio | 1.28 | 1.28 | 1.27 | 1.27 | 1.26 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,696,410K ÷ $2,108,510K
= 1.28
The financial leverage ratio of Unifirst Corporation has remained relatively stable over the past five years, ranging from 1.26 to 1.28. This indicates that the company has consistently utilized a moderate level of debt in its capital structure to finance its operations and growth. A financial leverage ratio above 1 signifies that the company has more debt than equity in its capital structure, which can magnify returns but also increase financial risk.
The consistent nature of the financial leverage ratio suggests that Unifirst Corporation has maintained a balanced approach to capital structure management, avoiding significant fluctuations in its debt levels. This stability in leverage ratio may reflect prudent financial management practices and a disciplined approach to capital allocation. Investors and stakeholders may view this as a positive signal of the company's financial health and risk management capabilities.
Peer comparison
Aug 31, 2024