Cintas Corporation (CTAS)
Receivables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,596,620 | 8,706,250 | 7,777,990 | 7,040,630 | 7,085,120 |
| Receivables | US$ in thousands | 1,244,180 | 1,152,990 | 1,027,930 | 923,992 | 870,369 |
| Receivables turnover | 7.71 | 7.55 | 7.57 | 7.62 | 8.14 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,596,620K ÷ $1,244,180K
= 7.71
The receivables turnover ratio of Cintas Corporation has shown consistency over the past five years, ranging between 7.55 and 8.14. This ratio indicates that, on average, Cintas collects its accounts receivable approximately 7.55 to 8.14 times per year. A higher turnover ratio typically suggests a more efficient collection process, as the company is converting its accounts receivable into cash more frequently.
While the slight fluctuations in the ratio from year to year are normal, the overall trend indicates that Cintas has been effectively managing its accounts receivable turnover. It is essential to monitor this ratio to ensure that the company is maintaining a healthy balance between providing credit to customers and collecting payments in a timely manner.
Peer comparison
May 31, 2024