Cintas Corporation (CTAS)

Working capital 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
Revenue (ttm) US$ in thousands 10,340,180 10,143,470 9,940,480 9,755,880 9,596,620 9,410,150 9,193,970 8,991,650 8,815,770 8,605,990 8,376,540 8,123,960 7,854,460 7,615,430 7,431,950 7,266,720 7,116,350 6,900,270 6,933,860 7,020,560
Total current assets US$ in thousands 3,436,170 3,341,430 3,170,390 3,043,390 2,050,460 1,911,100 3,036,740 2,987,530 2,938,460 2,910,160 2,893,170 2,747,790 2,631,980 2,686,740 2,655,470 2,477,670 2,843,310 2,978,560 3,102,770 2,666,180
Total current liabilities US$ in thousands 1,644,500 1,941,150 2,007,770 1,984,890 1,828,520 1,273,900 1,357,600 1,168,840 1,230,060 1,388,260 1,553,740 1,599,540 1,432,890 2,623,490 2,177,930 2,269,040 1,934,080 1,270,360 1,508,470 1,093,350
Working capital turnover 5.77 7.24 8.55 9.22 43.24 14.77 5.48 4.94 5.16 5.65 6.25 7.08 6.55 120.40 15.56 34.83 7.83 4.04 4.35 4.46

May 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,340,180K ÷ ($3,436,170K – $1,644,500K)
= 5.77

The analysis of Cintas Corporation's working capital turnover from August 2020 through May 2025 reveals significant fluctuations over the period, indicating variability in how efficiently the company utilizes its working capital to generate sales.

Initially, the ratio remained relatively stable, with values around 4.4 to 4.5 in late 2020 and early 2021, suggesting consistent efficiency in managing working capital relative to sales. However, a notable increase occurs starting in May 2021, where the ratio jumps to 7.83, followed by a dramatic escalation to 34.83 in August 2021 and an extreme peak of 120.40 in February 2022. These peaks likely reflect extraordinary changes in working capital relative to sales, possibly due to seasonal effects, one-time adjustments, or shifts in working capital management practices.

After reaching this peak, the ratio decreases sharply, settling back into more moderate levels around 6.5 to 7.1 through May 2022 and remaining within a similar range until November 2022. Subsequently, the ratio exhibits variability, with the next significant surge occurring in May 2024, reaching 43.24, followed by a decline to approximately 8.55 in November 2024, and then somewhat stabilizing between 7 and 9 through early 2025.

Overall, these fluctuations suggest periods of rapid shifts in working capital management and operational efficiencies. The extreme peaks, particularly in early 2022 and mid-2024, may be indicative of temporary factors or strategic adjustments impacting the company's ability to generate sales from its working capital. The more stable periods may reflect consistent operational management, but the overall variability underscores the importance of monitoring these ratios for insights into ongoing operational efficiency and liquidity management practices.


Peer comparison

May 31, 2025


See also:

Cintas Corporation Working Capital Turnover (Quarterly Data)