Asset Breakdown
660 M
Assets Non Current
287 M
Goodwill
761.6 M
Current Assets
| Total Assets | 1.74 Billion | |
| Current Assets | 761.64 Million | |
| Assets Non Current | 659.96 Million | |
| Goodwill | 286.97 Million | |
| Tax Assets | 8.49 Million |
You think Unifirst (NYSE:UNF) debt is an issue for shareholders?
 | By Vlad Skutelnik | Macroaxis Story |
Unifirst is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 6th of January 2021. Unifirst Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.000176. The current year Calculated Tax Rate is expected to grow to 32.18, whereas Revenue Per Employee is forecasted to decline to about 115.9 K. As many millenniums are trying to avoid industrials space, it makes sense to digest Unifirst a little further and try to understand its current market patterns. We will analyze why Unifirst investors may still consider a stake in the business.
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Reviewed by Michael Smolkin
The company has 41.83 M in debt with debt to equity (D/E) ratio of 0.02, which may show that the firm is not taking advantage of profits from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Unifirst has an asset utilization ratio of 105.76 percent. This indicates that the company is making $1.06 for each dollar of assets. An increasing asset utilization means that Unifirst is more efficient with each dollar of assets it utilizes for everyday operations. Unifirst financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Unifirst, including all of Unifirst's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Unifirst assets, the company is considered highly leveraged. Understanding the composition and structure of overall Unifirst debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Unifirst Total Liabilities
Unifirst liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Unifirst has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Unifirst balance sheet include debt obligations and money owed to different Unifirst vendors, workers, and loan providers. Below is the chart of Unifirst short long-term liabilities accounts currently reported on its balance sheet. You can use Unifirst financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Unifirst's Liquidity
Unifirst financial leverage refers to using borrowed capital as a funding source to finance Unifirst ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unifirst financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Unifirst's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Unifirst's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Unifirst's total debt and its cash.
Breaking it down a bit more
Unifirst reported the last year's revenue of 1.8 B. Total Income to common stockholders was 135.77 M with profit before taxes, overhead, and interest of 639.23 M.
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