Cintas Corporation (CTAS)

Cash ratio

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Cash and cash equivalents	US$ in thousands	263,973	342,015	124,149	90,471	493,640
Short-term investments	US$ in thousands	—	—	—	—	274,616
Total current liabilities	US$ in thousands	1,644,500	1,828,520	1,230,060	1,432,890	1,934,080
Cash ratio		0.16	0.19	0.10	0.06	0.40

May 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($263,973K + $—K) ÷ $1,644,500K
= 0.16

The cash ratio of Cintas Corporation has exhibited notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2024. At the end of fiscal year 2021, the cash ratio stood at 0.40, indicating that the company’s cash and cash equivalents sufficiently covered 40% of its current liabilities, reflecting a relatively conservative position with respect to liquidity. By the end of fiscal 2022, the cash ratio declined sharply to 0.06, suggesting a substantial reduction in liquid assets relative to current liabilities and implying increased reliance on other liquidity sources or working capital management strategies. Subsequently, the cash ratio experienced a moderate recovery to 0.10 by May 31, 2023, and further increased to 0.19 by May 31, 2024. Though the ratio has improved from its low point in 2022, it remains well below the 2021 level, indicating that the company's cash holdings continue to represent a relatively small proportion of current liabilities. The absence of data for May 31, 2025, precludes further trend analysis. Overall, the data demonstrates a significant decrease in the cash ratio from 2021 to 2022, followed by gradual recovery in subsequent years, suggesting adjustments in liquidity management or cash holdings relative to current liabilities over time.