Cintas Corporation (CTAS)

The analysis of Cintas Corporation's accounts payable period over the period from August 2020 to May 2025 reveals fluctuations and a general upward trend in the number of days the company takes to settle its payables.

Initially, the payable days ranged from a low of approximately 19.12 days in August 2021 to a high of 26.63 days in November 2020, indicating variability within a relatively stable range of approximately 19 to 27 days. During this period, the company maintained a payables period largely below 27 days, suggesting relatively prompt payment practices.

From August 2022 onward, the payable days showed an increasing trend, reaching around 24 to 25 days by November 2022 and February 2023. This slight increase indicates that Cintas was taking marginally longer to settle its liabilities, although the period remained within a moderate range.

A notable change appears in the outlook from mid-2024, where the number of days of payables escalates significantly, reaching approximately 29.99 days in November 2024. This upward movement continues into early 2025, with the payable days rising sharply to approximately 34.27 days by May 2025. This stark increase suggests a deliberate extension of payment terms, which could be driven by changes in supplier negotiations, cash flow management strategies, or shifts in the company's working capital policies.

Overall, the historical data indicates that while Cintas predominantly maintained a payables period between around 19 and 26 days, recent years, particularly from late 2023 onward, have seen a substantial increase, ending with over 34 days in the latest available period. This trend reflects a movement towards longer credit periods, potentially impacting the company's liquidity management and working capital cycle.

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May 31, 2025