Unifirst Corporation (UNF)
Interest coverage
| 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 | May 25, 2019 | Feb 23, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 214,510 | 201,385 |
| Interest expense (ttm) | US$ in thousands | 7,744 | 9,722 | 10,834 | 6,347 | 4,181 | 2,851 | 2,205 | 2,536 | 2,648 | 2,568 | 2,894 | 3,277 | 4,589 | 6,382 | 8,665 | 9,904 | 9,738 | 9,082 | 7,655 | 6,551 |
| Interest coverage | 17.82 | 15.79 | 12.33 | 20.65 | 31.81 | 47.12 | 66.23 | 65.65 | 69.70 | 76.26 | 66.24 | 50.42 | 36.76 | 27.07 | 22.03 | 22.55 | 24.82 | 25.55 | 28.02 | 30.74 |
February 24, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $138,014K ÷ $7,744K
= 17.82
The interest coverage ratio for Unifirst Corporation has shown a generally positive trend over the last several quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained above 1, reflecting that Unifirst Corporation is generating more than enough operating income to cover its interest expenses.
The interest coverage ratio peaked at 76.26 in August 2021 and has since maintained relatively high levels, with the latest reported figure of 17.82 in February 2024. This demonstrates the company's strong financial position and ability to service its debt obligations effectively.
The trend of increasing interest coverage ratios indicates that Unifirst Corporation has been efficiently managing its debt and interest expenses, which is a positive signal for investors and creditors. A high interest coverage ratio is generally seen as a sign of financial strength and stability, as it suggests that the company has a healthy cash flow to cover its interest payments.
Overall, the consistent improvement in Unifirst Corporation's interest coverage ratio reflects a prudent financial strategy and operational efficiency, contributing to the company's overall financial health and stability.
Peer comparison
Feb 24, 2024