Cintas Corporation (CTAS)

Payables turnover

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	5,166,020	5,121,550	5,090,630	5,041,180	4,992,480	4,890,980	4,788,040	4,704,820	4,642,400	4,575,200	4,481,630	4,366,360	4,222,214	4,070,335	3,975,485	3,875,509	3,801,689	3,736,842	3,755,555	3,809,749
Payables	US$ in thousands	485,109	408,461	418,259	395,931	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
Payables turnover		10.65	12.54	12.17	12.73	14.72	15.88	15.12	14.95	15.36	16.24	14.41	14.94	16.79	17.32	16.54	19.09	16.47	15.71	13.71	15.09

May 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,166,020K ÷ $485,109K
= 10.65

The analysis of Cintas Corporation’s payables turnover over the specified period reveals a trend characterized by fluctuations and an overall decline in recent periods. Historically, the ratio experienced its highest point around August 31, 2021, at 19.09, indicating a relatively rapid turnover of payables during that time. Following this peak, the ratio demonstrated variability, with periods of modest increase and decrease.

From August 31, 2021, onward, the payables turnover generally declined, reaching a low of 10.65 as of May 31, 2025. This downward trend suggests that the company has been taking longer to settle its accounts payable obligations over the last few years. The ratio's decline from the earlier high points indicates a possible shift toward extended payment periods to suppliers, which could be interpreted as a strategic move to conserve cash, improve liquidity, or negotiate longer payment terms.

The period from August 2023 through May 2025 shows a consistent decrease in the payables turnover ratio, implying an increasing average period for payables. The ratio's reduction from approximately 14.95 in August 2023 to 10.65 in May 2025 represents a substantial elongation in payment cycles.

In conclusion, Cintas Corporation’s payables turnover ratio has demonstrated notable variability over the years, with a distinct declining trend in the recent periods. This pattern may reflect deliberate policies aimed at optimizing cash flow management, although it warrants ongoing monitoring to assess the implications on supplier relationships and overall liquidity.