Cintas Corporation (CTAS)

Days of inventory on hand (DOH)

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Inventory turnover		6.77	4.98	4.71	4.40	9.42
DOH	days	53.91	73.36	77.57	82.96	38.75

May 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.77
= 53.91

The Days of Inventory on Hand (DOH) for Cintas Corporation has shown a fluctuating trend over the past five years. The company's DOH was 53.91 days as of May 31, 2024, reflecting a significant improvement from the previous year's 73.36 days. This suggests that Cintas has become more efficient in managing its inventory levels relative to its cost of goods sold.

Comparing the current DOH to the figures from the past four years, we observe a general downward trend in inventory holding period, indicating a positive movement towards more optimal inventory management practices by the company.

The decrease in DOH from 82.96 days in May 31, 2021, to 53.91 days in May 31, 2024, is particularly noteworthy, indicating a substantial improvement in inventory turnover efficiency over this three-year period.

Overall, the declining trend in Cintas Corporation's Days of Inventory on Hand suggests that the company has been effective in aligning its inventory levels with sales demand and has managed to optimize its inventory turnover, which is a positive sign for operational efficiency and potentially improving the company's liquidity and profitability ratios.