United Natural Foods Inc (UNFI)
Working capital turnover
| Aug 3, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 30,984,000 | 30,138,000 | 28,858,000 | 26,755,000 | 26,303,000 |
| Total current assets | US$ in thousands | 3,402,000 | 3,463,000 | 3,797,000 | 3,550,000 | 3,705,000 |
| Total current liabilities | US$ in thousands | 2,365,000 | 2,405,000 | 2,417,000 | 2,487,000 | 2,370,000 |
| Working capital turnover | 29.88 | 28.49 | 20.91 | 25.17 | 19.70 |
August 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $30,984,000K ÷ ($3,402,000K – $2,365,000K)
= 29.88
The working capital turnover ratio measures how well a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently using its working capital to generate sales.
Analyzing the trend of United Natural Foods Inc's working capital turnover ratio over the past five years, we observe a fluctuating pattern. The ratio has been improving over the period, indicating an increasing efficiency in using working capital to generate sales.
In 2024, the working capital turnover ratio reached 29.88, which is higher compared to the previous year's ratio of 28.49. This increase suggests that the company has improved its ability to generate sales revenue using its working capital.
Comparing the current ratio to that of 2020, we see a significant improvement from 19.70 to 29.88. This indicates a notable enhancement in the company's efficiency in utilizing its working capital to drive sales growth over the years.
Overall, the trend in United Natural Foods Inc's working capital turnover ratio indicates a positive direction in terms of its operational efficiency and effectiveness in utilizing working capital to support its core business activities.
Peer comparison
Aug 3, 2024