United Natural Foods Inc (UNFI)
Working capital turnover
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 30,138,000 | 28,858,000 | 26,755,000 | 26,303,000 | 22,127,200 |
| Total current assets | US$ in thousands | 3,463,000 | 3,797,000 | 3,550,000 | 3,705,000 | 3,558,930 |
| Total current liabilities | US$ in thousands | 2,405,000 | 2,417,000 | 2,487,000 | 2,370,000 | 2,108,940 |
| Working capital turnover | 28.49 | 20.91 | 25.17 | 19.70 | 15.26 |
July 29, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $30,138,000K ÷ ($3,463,000K – $2,405,000K)
= 28.49
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. United Natural Foods Inc.'s working capital turnover has shown a consistent upward trend over the past five years, indicating an improvement in the company's efficiency in using its working capital to support its sales activities.
The significant increase in the working capital turnover ratio from 14.66 in 2019 to 28.61 in 2023 reflects the company's ability to generate higher sales revenue relative to its working capital. This suggests that UNFI has been able to leverage its current assets and liabilities more effectively to support its operations and sales.
The rising trend in the working capital turnover ratio indicates that UNFI has been improving its working capital management, potentially by reducing excess inventory and managing its accounts payable and receivable more efficiently.
Overall, the increasing working capital turnover ratio suggests that UNFI has been effectively utilizing its working capital to drive sales growth and improve its operational efficiency over the past five years.
Peer comparison
Jul 29, 2023