Cintas Corporation (CTAS)

Quick 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
Cash	US$ in thousands	342,015	128,483	85,556	88,126	124,149	88,563	89,799	74,558	90,471	84,136	113,170	79,749	493,640	553,611	703,175	421,542	145,402	234,441	226,535	102,131
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	295,268	274,616	264,581	252,454	240,431	—	—	—	—
Receivables	US$ in thousands	1,244,180	1,262,080	1,273,970	1,197,340	1,152,990	1,136,090	1,149,490	1,082,780	1,027,930	1,070,680	1,064,580	938,609	923,992	987,421	967,068	866,414	870,369	966,338	974,000	917,535
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
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

May 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($342,015K + $—K + $1,244,180K) ÷ $1,828,520K
= 0.87

The quick ratio of Cintas Corporation, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the past few quarters.

For the most recent quarter ending May 31, 2024, the quick ratio stands at 0.87, indicating that the company may have slightly less liquid assets available to cover its current liabilities. In the preceding quarter, the quick ratio was healthier at 1.09, suggesting improved liquidity.

Looking back further, the quick ratio has varied between 0.44 and 1.42 over the past few years. This indicates fluctuations in the company's ability to quickly cover its short-term obligations with liquid assets. Notably, the quick ratio was above 1 in most quarters, suggesting that Cintas has generally had sufficient liquid assets to cover its short-term liabilities.

It is essential for investors and stakeholders to monitor the trend of the quick ratio over time to assess Cintas Corporation's liquidity position and its ability to meet its short-term financial obligations.