Cintas Corporation (CTAS)

Debt-to-equity 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-equity ratio		0.47	0.64	0.75	0.45	0.79

May 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,025,930K ÷ $4,316,370K
= 0.47

The debt-to-equity ratio of Cintas Corporation has shown fluctuations over the past five years. In 2024, the ratio stands at 0.47, indicating a decrease from the previous year's ratio of 0.64. This suggests that the company's reliance on debt to finance its operations has decreased, potentially reflecting a more conservative financial strategy.

Comparing the current ratio to historical data, it is lower than the ratios for 2022 and 2020 but higher than those for 2021 and 2019. This implies that Cintas Corporation has varied in its capital structure over the years, at times relying more on debt to fund its activities and at other times emphasizing equity financing.

Overall, the declining trend in the debt-to-equity ratio may signal improved financial health and reduced risk for the company. However, further analysis of the company's financial statements and industry trends would be necessary to fully assess the implications of these changes in the debt-to-equity ratio for Cintas Corporation.