Cintas Corporation (CTAS)

Days of inventory on hand (DOH)

		May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Inventory turnover		6.77	6.04	5.56	5.17	4.98	4.65	4.61	4.86	4.71	4.52	4.72	4.64	4.40	4.58	5.45	6.97	9.42	11.08	11.06	11.31
DOH	days	53.91	60.45	65.59	70.62	73.36	78.46	79.12	75.17	77.57	80.69	77.41	78.59	82.96	79.62	66.95	52.39	38.75	32.95	33.02	32.28

May 31, 2024 calculation

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

The days of inventory on hand (DOH) for Cintas Corporation have shown fluctuations over the past few years, reflecting the company's inventory management efficiency. The DOH has ranged from a low of 32.28 days on August 31, 2019, to a high of 82.96 days on May 31, 2021.

From November 2019 to November 2020, the DOH experienced a steady increase, reaching its peak at 82.96 days on May 31, 2021. This may indicate potential issues with inventory management during that period, leading to an accumulation of excess inventory.

Subsequently, Cintas Corporation made improvements in inventory management as reflected in the decreasing trend in DOH from May 2021 to August 2022. The DOH decreased to 75.17 days on August 31, 2022, indicating a more efficient handling of inventory levels.

However, there was a temporary increase in DOH from August 2022 to February 2023, which peaked at 78.46 days. This increase may signal challenges in aligning inventory levels with sales demand during that period.

From February 2023 to May 2024, the DOH fluctuated around the 60-70 day range, suggesting some variability in inventory management efficiency during those quarters.

Overall, Cintas Corporation's management of inventory levels, as indicated by the DOH ratio, has shown improvements over the years, albeit with some fluctuations. Monitoring this ratio closely can help assess the company's ability to effectively manage its inventory to meet customer demand and optimize working capital.