Cintas Corporation (CTAS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.87 | 1.09 | 1.00 | 1.10 | 1.04 | 0.88 | 0.80 | 0.72 | 0.78 | 0.44 | 0.54 | 0.58 | 0.87 | 1.42 | 1.27 | 1.40 | 1.15 | 1.13 | 0.93 | 0.91 |
| Cash ratio | 0.19 | 0.10 | 0.06 | 0.08 | 0.10 | 0.06 | 0.06 | 0.05 | 0.06 | 0.03 | 0.05 | 0.17 | 0.40 | 0.64 | 0.63 | 0.61 | 0.16 | 0.22 | 0.17 | 0.09 |
The liquidity ratios of Cintas Corporation have shown varying trends over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated within a range of 1.02 to 2.56. The ratio has generally been above 1, indicating that the company has had more than enough current assets to meet its current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown fluctuations, ranging from 0.44 to 1.42. This ratio indicates the company's ability to pay off its current liabilities without relying on the sale of inventory.
The cash ratio, which is the most conservative liquidity ratio, measuring the company's ability to cover its current liabilities with its cash and cash equivalents, has shown significant variability, ranging from 0.03 to 0.64. This ratio demonstrates the company's ability to meet its short-term obligations using its most liquid assets.
Overall, Cintas Corporation has generally maintained comfortable liquidity levels, as evidenced by the current ratios consistently above 1 and the quick and cash ratios demonstrating the company's ability to cover its short-term obligations. However, there have been fluctuations in these ratios over the quarters, suggesting that the company's liquidity position may have experienced some variability during the period under review.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 56.66 | 68.68 | 73.00 | 75.20 | 77.92 | 85.59 | 81.96 | 77.95 | 84.49 | 93.50 | 90.18 | 91.82 | 91.12 | 96.90 | 83.87 | 70.49 | 61.70 | 58.83 | 58.74 | 57.31 |
The cash conversion cycle for Cintas Corporation, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has varied over the past few quarters.
The cash conversion cycle has shown a fluctuating trend, with periods of increase and decrease. Starting from 58.74 days in Nov 2019, the cycle initially decreased before showing an upward trend, reaching a peak of 96.90 days in Feb 2021. Subsequently, there were fluctuations until Nov 2022, where it peaked again at 93.50 days. In the most recent quarter, there has been a slight improvement, with the cycle decreasing to 56.66 days.
Overall, the company's cash conversion cycle has shown some volatility, with periods of prolonged conversion times. It is essential for Cintas Corporation to continue monitoring and managing its working capital effectively to optimize its cash flow and liquidity position.