Cintas Corporation (CTAS)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,777,144	2,724,308	2,642,279	2,575,827	2,520,704	2,471,483	2,375,013	2,301,013	2,221,776	2,201,735	2,191,834	2,153,433	2,119,873	2,444,419	2,912,024	3,400,970	3,851,372	3,909,773	3,850,697	3,802,449
Payables	US$ in thousands	339,166	307,941	316,697	314,743	302,292	281,649	310,986	292,321	251,504	235,051	240,322	202,968	230,786	237,857	274,021	252,513	230,995	243,248	254,611	237,242
Payables turnover		8.19	8.85	8.34	8.18	8.34	8.78	7.64	7.87	8.83	9.37	9.12	10.61	9.19	10.28	10.63	13.47	16.67	16.07	15.12	16.03

May 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,777,144K ÷ $339,166K
= 8.19

The payables turnover ratio for Cintas Corporation has shown consistent fluctuations over the past several quarters. The ratio measures how efficiently the company is managing its accounts payable by indicating how many times the company pays off its suppliers during a specific period.

From November 2020 to May 2021, there was a noticeable increase in the payables turnover ratio, indicating that Cintas was paying off its suppliers more frequently. This trend continued until May 2022, where the ratio peaked at 9.37, suggesting efficient management of accounts payable.

However, from August 2022 to August 2024, the payables turnover ratio showed a declining trend, dropping back below the 9 mark. This may indicate a slowdown in the company's payment to suppliers or a change in its supplier relationships.

Overall, while the payables turnover ratio fluctuated over the periods analyzed, Cintas Corporation generally maintained a relatively high turnover rate, indicating effective management of its accounts payable and potentially strong supplier relationships. Investors and stakeholders should continue to monitor this ratio to assess the company's liquidity and financial health.