United Natural Foods Inc (UNFI)

Short-term

Turnover ratios

United Natural Foods Inc. has shown consistent improvement in its activity ratios over the past five years. The inventory turnover has increased from 8.90 in 2019 to 11.41 in 2023, indicating that the company has been more efficient in managing its inventory. Similarly, the receivables turnover has steadily risen, reaching 34.05 in 2023, reflecting the company's ability to collect receivables more rapidly.

The payables turnover has also shown consistent improvement, indicating that the company is effectively managing its payables. This is further corroborated by the working capital turnover, which has increased from 14.66 in 2019 to 28.61 in 2023, suggesting that the company is generating revenue more efficiently relative to its working capital.

Overall, the trend in activity ratios suggests that United Natural Foods Inc. has been increasingly effective in managing its resources and operations, which could potentially result in improved cash flows and overall financial performance.

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Average number of days

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. A lower DOH indicates that the company is selling inventory more quickly. United Natural Foods Inc. has shown a decreasing trend in its DOH over the past five years, from 41.00 days in 2019 to 32.00 days in 2023, which reflects improved inventory management efficiency.

Days of sales outstanding (DSO) indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO suggests that the company is collecting its receivables more effectively. United Natural Foods Inc. has displayed a declining trend in DSO over the past five years, from 18.19 days in 2019 to 10.72 days in 2023. This indicates a more efficient collection of receivables and a positive impact on the company's cash flow.

Number of days of payables illustrates the average number of days it takes for a company to pay its suppliers. A longer period indicates that the company is taking longer to settle its payables. United Natural Foods Inc. has shown a decreasing trend in the number of days of payables over the past five years, from 28.98 days in 2019 to 24.87 days in 2023. This trend indicates that the company is managing its payables more efficiently.

In summary, United Natural Foods Inc. has improved its inventory management efficiency, receivables collection, and payables management over the past five years, which may have positively impacted its working capital and cash flow.

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Long-term

The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. United Natural Foods Inc. has consistently maintained a high fixed asset turnover ratio, indicating effective utilization of its fixed assets to generate sales. The slight increase in the ratio from 2022 to 2023 suggests improved efficiency in utilizing its fixed assets to generate revenue.

The total asset turnover ratio reflects the company's ability to generate sales from its total assets. United Natural Foods Inc. has demonstrated a positive trend in this ratio over the years, indicating an increasing ability to generate sales from its total assets. This suggests efficient asset utilization and effective management of its resources to drive sales growth.

Overall, the consistent high fixed asset turnover and improving total asset turnover ratios reflect United Natural Foods Inc.'s effective management of its assets and efficient utilization of resources to drive sales, which is a positive indicator of the company's long-term activity performance.