Cintas Corporation (CTAS)
Number of days of payables
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.19 | 8.34 | 8.83 | 9.19 | 16.67 | |
| Number of days of payables | days | 44.58 | 43.77 | 41.32 | 39.74 | 21.89 |
May 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.19
= 44.58
Cintas Corporation's number of days of payables has shown an increasing trend over the past five years. In May 2024, the company took an average of 44.58 days to pay its outstanding payables, compared to 43.77 days in 2023 and 41.32 days in 2022. This indicates that Cintas is taking slightly longer to settle its payables obligations over time.
The increase in the number of days of payables can suggest a potential strain on the company's liquidity or a shift in the company's payment practices. It may also indicate that Cintas is taking advantage of extended payment terms from its suppliers, which can provide a short-term boost to cash flow but could impact relationships with suppliers in the long term.
Overall, monitoring the trend in days of payables can provide insights into Cintas' cash management practices, supplier relationships, and potential financial risks related to its working capital management.
Peer comparison
May 31, 2024