Cintas Corporation (CTAS)

Quick 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
Cash	US$ in thousands	263,973	243,428	122,395	101,373	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	295,268	274,616	264,581	252,454	240,431
Receivables	US$ in thousands	1,417,380	1,398,490	1,381,410	1,293,790	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
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
Quick ratio		1.02	0.85	0.75	0.70	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

May 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($263,973K + $—K + $1,417,380K) ÷ $1,644,500K
= 1.02

The analysis of Cintas Corporation's quick ratio over the specified periods reveals notable fluctuations and trends.

Initially, the quick ratio stood at 1.40 as of August 31, 2020, indicating a robust liquidity position with sufficient liquid assets to cover current liabilities. This ratio decreased to 1.27 by November 30, 2020, reflecting a slight reduction in liquidity. The ratio increased again to 1.42 by February 28, 2021, suggesting a temporary strengthening of quick assets relative to current liabilities.

A significant decline occurred by May 31, 2021, when the ratio dropped to 0.87, indicating a reduction in liquidity or increased current liabilities. The trend continued downward through the subsequent periods, reaching a low of 0.44 on February 28, 2022, which may point to challenges in maintaining liquid assets or an increase in short-term obligations.

Post-February 2022, the quick ratio exhibited a gradual recovery, ascending to 0.78 on May 31, 2022, and further to 0.80 by November 30, 2022. The upward trend persisted into 2023, with the ratio reaching 0.88 in February and surpassing a value of 1.00, at 1.04 on May 31, 2023, signaling improved liquidity.

Subsequently, the ratio continued to fluctuate around the 1.00 level, with values of 1.10 on August 31, 2023, and 1.00 on November 30, 2023. It slightly declined to 1.09 in February 2024 but remained close to the 1.00 mark in the following periods.

Overall, the data indicates that Cintas Corporation experienced periods of liquidity stress, particularly between May 2021 and February 2022, characterized by decreased quick ratios. However, it demonstrated a recovery trend thereafter, maintaining quick ratios generally above 0.75, with several periods exceeding the critical threshold of 1.00, which suggests adequate liquidity to meet short-term obligations in recent periods.