Cintas Corporation (CTAS)

Debt-to-capital 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
Long-term debt	US$ in thousands	2,025,930	2,474,910	2,474,290	2,477,090	2,486,400	2,485,950	2,485,280	2,484,600	2,483,930	1,343,510	1,343,370	1,343,220	1,642,830	2,291,420	2,290,930	2,290,450	2,539,700	2,539,160	2,538,610	2,538,060
Total stockholders’ equity	US$ in thousands	4,316,370	4,234,080	3,994,480	4,077,640	3,863,990	3,633,260	3,430,540	3,229,630	3,308,200	3,293,900	3,563,130	3,309,200	3,687,850	3,816,510	3,597,960	3,604,800	3,235,200	3,324,310	3,104,970	3,050,710
Debt-to-capital ratio		0.32	0.37	0.38	0.38	0.39	0.41	0.42	0.43	0.43	0.29	0.27	0.29	0.31	0.38	0.39	0.39	0.44	0.43	0.45	0.45

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 shown some fluctuations over the past few periods, ranging from 0.27 to 0.45. This ratio measures the proportion of total debt to total capital employed by the company, indicating its reliance on debt financing.

The decreasing trend from 0.45 in August 2019 to 0.27 in February 2022 suggests a reduction in the proportion of debt relative to total capital during this period. However, from February 2022 to May 2024, the ratio increased steadily, reaching 0.32 in May 2024. This upward trend indicates a growing reliance on debt financing compared to total capital over these more recent periods.

While the debt-to-capital ratio is just one indicator of a company's financial health, a higher ratio may signal higher financial risk and leverage. It is important for investors and stakeholders to monitor this ratio in conjunction with other financial metrics to assess Cintas Corporation's overall financial stability and risk profile.