Cintas Corporation (CTAS)

Debt-to-equity 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-equity ratio		0.47	0.58	0.62	0.61	0.64	0.68	0.72	0.77	0.75	0.41	0.38	0.41	0.45	0.60	0.64	0.64	0.79	0.76	0.82	0.83

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 fluctuated over the past few years, ranging from a low of 0.38 to a high of 0.83. A lower ratio indicates that the company relies more on equity to finance its operations, while a higher ratio suggests a higher proportion of debt relative to equity.

In the most recent period, as of May 31, 2024, the debt-to-equity ratio was 0.47, indicating a relatively conservative debt structure compared to the previous periods. However, it is important to consider the trend over time and observe that the ratio has varied, reaching its lowest point in the second quarter of the fiscal year 2022 at 0.38, and its highest point in the third quarter of the fiscal year 2019 at 0.83.

Overall, the fluctuation in the debt-to-equity ratio of Cintas Corporation suggests changes in the company's capital structure and financing decisions over time. It is essential for stakeholders to monitor this ratio along with other financial metrics to assess the company's financial health and risk profile.