Cintas Corporation (CTAS)

Current ratio

		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
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
Current ratio		2.09	1.72	1.58	1.53	1.12	1.50	2.24	2.56	2.39	2.10	1.86	1.72	1.84	1.02	1.22	1.09	1.47	2.34	2.06	2.44

May 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,436,170K ÷ $1,644,500K
= 2.09

The analysis of Cintas Corporation's current ratio over the specified period demonstrates fluctuations that reflect the company's evolving liquidity position. The current ratio, which measures a company's ability to meet short-term obligations with its short-term assets, experienced an initial decline from 2.44 on August 31, 2020, to a low of 1.09 on August 31, 2021. This downward trend indicates a gradual reduction in liquidity, possibly attributable to increased short-term liabilities or a relative decrease in current assets during that period.

Subsequently, the ratio showed signs of recovery, rising to 2.39 by May 31, 2023, and reaching a peak of 2.56 on August 31, 2023. These increases suggest an improvement in liquidity, with the company having a more comfortable cushion of current assets over current liabilities. However, the ratio declined again thereafter, falling to 2.24 as of November 30, 2023, before dropping further to 1.50 on February 29, 2024, and continuing downward to 1.12 on May 31, 2024. These declines reflect periods of decreased short-term asset coverage, which may signal liquidity concerns or shifting asset composition.

Since May 31, 2024, there has been some stabilization, with the ratio increasing to 1.53 on August 31, 2024, and slightly improving further to 1.58 on November 30, 2024. The latest figures indicate a gradual recovery, with ratios reaching 1.72 on February 28, 2025, and 2.09 on May 31, 2025. Overall, the current ratio has fluctuated within a range roughly between 1.09 and 2.56, reflecting periods of both relative liquidity strength and concern.

Throughout the period, the trend suggests that Cintas has experienced periods of tightening liquidity, particularly around mid-2021 to early 2024, followed by phases of recovery. An average current ratio above 1.5 in the more recent periods indicates that the company generally maintains sufficient short-term assets to cover short-term liabilities, but the recent dips below 2 reflect potential vulnerabilities in liquidity that warrant ongoing monitoring.