Cintas Corporation (CTAS)

Debt-to-assets ratio

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Long-term debt	US$ in thousands	2,025,930	2,486,400	2,483,930	1,642,830	2,539,700
Total assets	US$ in thousands	9,168,820	8,546,360	8,147,260	8,236,820	7,669,880
Debt-to-assets ratio		0.22	0.29	0.30	0.20	0.33

May 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,025,930K ÷ $9,168,820K
= 0.22

The debt-to-assets ratio of Cintas Corporation has fluctuated over the past five years. The ratio decreased from 0.33 in May 2020 to 0.20 in May 2021, indicating a significant reduction in the company's debt relative to its total assets. However, the ratio increased in the subsequent years, reaching 0.30 in May 2022 and 0.29 in May 2023, before declining again to 0.22 in May 2024.

A lower debt-to-assets ratio generally suggests lower financial risk, as it indicates a lower reliance on debt to finance the company's operations. On the other hand, a higher ratio may indicate a higher level of financial leverage and potential financial risk.

Overall, while the fluctuation in Cintas Corporation's debt-to-assets ratio over the years may indicate varying levels of debt management and financial risk, a downward trend in the ratio is generally viewed positively by investors and creditors.