Cintas Corporation (CTAS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,316,370	3,863,990	3,308,200	3,687,850	3,235,200
Debt-to-capital ratio		0.32	0.39	0.43	0.31	0.44

May 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,025,930K ÷ ($2,025,930K + $4,316,370K)
= 0.32

The debt-to-capital ratio of Cintas Corporation has fluctuated over the past five years, ranging from 0.31 to 0.44. The trend indicates that the company's reliance on debt as a source of financing relative to its total capital structure has varied over the years. In 2020, the ratio was at its highest point of 0.44, suggesting a higher proportion of debt compared to capital. This was followed by a decrease in 2021 to 0.31, indicating a lower reliance on debt for funding.

In 2022, the debt-to-capital ratio increased to 0.43, signifying a higher proportion of debt in the capital structure once again. However, in 2023 and 2024, the ratio decreased to 0.39 and 0.32, respectively. These lower ratios suggest a decreasing reliance on debt relative to capital in recent years.

Overall, the trend in the debt-to-capital ratio for Cintas Corporation demonstrates some variability, with fluctuations in the level of debt used to finance the company's operations. It is important for stakeholders to monitor this ratio to assess the company's financial leverage and risk management practices.