Cintas Corporation (CTAS)

Current ratio

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
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
Current ratio		1.74	2.39	1.84	1.47	2.61

May 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,185,210K ÷ $1,828,520K
= 1.74

The current ratio of Cintas Corporation has shown some fluctuations over the past five years. In 2024, the current ratio stands at 1.74, indicating a decrease from the previous year's ratio of 2.39. This implies that the company's current assets may not be as sufficient to cover its current liabilities as they were in the prior year.

Comparing the current ratio of 2024 to the ratios of the last five years, we observe a mixed trend in liquidity. The current ratio was highest in 2020 at 2.61, suggesting a strong ability to meet short-term obligations at that time. However, there was a significant decline in 2021 with a ratio of 1.47, indicating potential liquidity challenges.

The current ratio rebounded in 2022 to 1.84, reflecting an improvement in the company's liquidity position. Nevertheless, the ratio declined again in 2023 to 2.39, before dropping to 1.74 in 2024. This fluctuation in the current ratio may signal varying levels of liquidity risk and underscores the importance of analyzing additional financial metrics to gain a comprehensive understanding of Cintas Corporation's financial health.