Unifirst Corporation (UNF)
Solvency ratios
| Aug 31, 2024 | May 25, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 | 1.26 | 1.26 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.26 | 1.26 | 1.26 | 1.26 | 1.27 | 1.27 | 1.25 |
Based on the solvency ratios of Unifirst Corporation over the past few reporting periods, we can observe the following trends:
1. Debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00, indicating that the company has not utilized debt as a source of financing relative to its assets, capital, or equity during these periods.
2. The financial leverage ratio has shown some variability, ranging from 1.25 to 1.28. While it has remained relatively stable around the 1.27 mark in recent periods, it is slightly higher than earlier periods. This suggests that the company has been using a slightly higher proportion of debt in its capital structure compared to before, which may indicate a shift towards a more leveraged position.
Overall, the solvency ratios of Unifirst Corporation indicate a conservative approach to debt management, with a relatively low reliance on debt financing in its capital structure. However, the increasing trend in the financial leverage ratio warrants monitoring to ensure the company maintains a healthy balance between debt and equity to support its long-term financial stability.
Coverage ratios
| Aug 31, 2024 | May 25, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 34.34 | 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 |
The interest coverage ratio of Unifirst Corporation has exhibited fluctuations over the past few years. The interest coverage ratio, which represents the company's ability to meet interest payments on its debt obligations, was at its highest level of 76.26 in August 2021, indicating a strong ability to cover interest expenses. However, the ratio experienced a decline in subsequent periods but remained above 20, suggesting a healthy interest coverage position.
The interest coverage ratio reached its lowest point of 12.33 in August 2023, which could raise some concerns about the company's ability to meet its interest obligations comfortably. However, the ratio recovered in the following periods, exceeding 20 in most instances, reflecting a favorable trend.
Overall, Unifirst Corporation has generally maintained a satisfactory interest coverage ratio, indicating a strong capacity to fulfill its interest payment obligations with its operating earnings. Investors and creditors may find confidence in the company's ability to manage its debt service requirements effectively based on the observed interest coverage ratios.