Cintas Corporation (CTAS)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.71 | 7.38 | 7.14 | 7.42 | 7.55 | 7.49 | 7.21 | 7.43 | 7.57 | 7.05 | 6.92 | 7.66 | 7.62 | 6.91 | 7.12 | 8.07 | 8.14 | 7.51 | 7.32 | 7.64 | |
| DSO | days | 47.32 | 49.48 | 51.16 | 49.19 | 48.34 | 48.73 | 50.63 | 49.15 | 48.24 | 51.78 | 52.78 | 47.62 | 47.90 | 52.79 | 51.27 | 45.20 | 44.84 | 48.59 | 49.85 | 47.81 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.71
= 47.32
The Days Sales Outstanding (DSO) ratio for Cintas Corporation fluctuated over the past months, with a range from 44.84 days to 52.79 days. This metric indicates the average number of days it takes for the company to collect payment from its customers after making a sale.
A downward trend in DSO suggests efficient credit management and prompt collections, which can contribute to healthy cash flow and liquidity. Conversely, an increasing trend may indicate issues with accounts receivable management or potential credit risks.
In the latest period, the DSO stood at 47.32 days, representing a moderate decrease from the previous period. It is important for Cintas to closely monitor and manage its DSO to ensure timely collections and optimize working capital management. Further analysis and comparison with industry benchmarks may provide additional insights into the effectiveness of Cintas' credit policies and collection processes.
Peer comparison
May 31, 2024