Cintas Corporation (CTAS)

Working capital 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
Total current assets	US$ in thousands	3,185,210	2,938,460	2,631,980	2,843,310	2,309,700
Total current liabilities	US$ in thousands	1,828,520	1,230,060	1,432,890	1,934,080	885,195
Working capital turnover		7.07	5.10	6.49	7.74	4.97

May 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,596,620K ÷ ($3,185,210K – $1,828,520K)
= 7.07

The working capital turnover ratio for Cintas Corporation has been fluctuating over the past five years. It indicates how efficiently the company is using its working capital to generate sales revenue. A higher ratio suggests a more efficient use of working capital.

In 2024, the working capital turnover ratio was 7.07, an increase from the previous year's 5.10. This indicates that Cintas Corporation was able to generate 7.07 times its sales revenue using its working capital during the year. This improvement suggests better efficiency in managing working capital.

Comparing it to the ratios in 2022 and 2021, where the ratios were 6.49 and 7.74 respectively, we can see that the company's efficiency in utilizing working capital has improved from 2022 but declined compared to 2021.

In 2020, the ratio was 4.97, indicating less efficient utilization of working capital compared to the recent years. However, there has been a noticeable improvement in efficiency since then.

Overall, the trend in the working capital turnover ratio for Cintas Corporation shows some variability, but the recent increase in 2024 suggests an improvement in the company's ability to generate sales revenue using its working capital efficiently.