Unifirst Corporation (UNF)
Interest coverage
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 183,578 | 133,603 | 134,351 | 195,825 | 172,729 |
| Interest expense | US$ in thousands | — | — | 2,851 | 1,046 | 5,159 |
| Interest coverage | — | — | 47.12 | 187.21 | 33.48 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $183,578K ÷ $—K
= —
The interest coverage ratio for Unifirst Corporation has been improving over the past five years, indicating the company's ability to cover its interest expenses with its earnings. In 2021, the interest coverage ratio was very high at 187.21, implying that the company generated significantly more earnings than needed to cover its interest payments. This suggests a strong financial position and less risk of default due to inadequate cash flows. The interest coverage ratio dipped in 2020 and 2022 but remained relatively healthy, indicating the company's ability to comfortably meet its interest obligations. However, it is notable that the data for 2023 and 2024 is missing, which limits a complete analysis of the trend in recent years. Overall, based on the available data, Unifirst Corporation has shown a history of strong interest coverage ratios, reflecting its solid financial performance and ability to manage its debt obligations effectively.
Peer comparison
Aug 31, 2024