Cintas Corporation (CTAS)

Current ratio

		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	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Total current assets	US$ in thousands	3,185,210	3,031,000	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	2,309,700	2,497,710	2,490,290	2,289,820
Total current liabilities	US$ in thousands	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	885,195	1,066,650	1,297,250	1,122,880
Current ratio		1.74	2.38	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	2.61	2.34	1.92	2.04

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 fluctuations over the past few quarters. The ratio indicates the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally considered favorable as it suggests strong liquidity and financial stability.

Looking at the trend, the current ratio was notably high at 2.56 in August 2023, indicating a strong ability to meet short-term obligations. However, in the subsequent periods, the ratio decreased slightly but remained above 2, reflecting continued liquidity strength.

The lowest current ratio was observed in February 2022 at 1.02, suggesting a potential liquidity challenge for the company in meeting its short-term obligations at that time. The company improved its current ratio over the following quarters, reaching a high of 2.61 in August 2020.

Overall, Cintas Corporation has generally maintained current ratios above 1.5, indicating a solid ability to cover its short-term liabilities with current assets. Investors and creditors typically view this positively as it signals a healthy financial position. It is important for the company to continue monitoring and managing its liquidity to ensure it can meet its short-term obligations effectively.