Cintas Corporation (CTAS)

Financial leverage ratio

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	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
Total assets	US$ in thousands	9,825,240	9,611,140	9,366,530	9,068,710	9,481,300	8,978,880	8,813,870	8,719,680	8,546,360	8,466,000	8,427,010	8,261,030	8,147,260	8,168,600	8,017,410	7,857,750	8,236,820	8,347,500	8,454,750	8,043,380
Total stockholders’ equity	US$ in thousands	4,684,480	4,592,250	4,293,110	4,021,420	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
Financial leverage ratio		2.10	2.09	2.18	2.26	2.20	2.12	2.21	2.14	2.21	2.33	2.46	2.56	2.46	2.48	2.25	2.37	2.23	2.19	2.35	2.23

May 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,825,240K ÷ $4,684,480K
= 2.10

The financial leverage ratio of Cintas Corporation exhibits fluctuations over the analyzed period from August 2020 to May 2025. The ratio, which measures the extent of the company's leverage relative to its equity, ranged from a low of approximately 2.09 in February 2025 to a high of approximately 2.56 in August 2022.

Initially, between August and November 2020, the ratio increased, reaching 2.35, indicating a rise in leverage during that period. This upward trend continued, peaking at 2.56 in August 2022, suggesting that the company was employing relatively higher levels of debt to finance its assets during this time.

Subsequently, a general downward trend emerges from late 2022 through 2023 and into 2024. The ratio declines from 2.46 in November 2022 to about 2.12 in February 2024. This decrease signifies a gradual reduction in leverage, possibly reflecting efforts to deleverage or stabilize the company's capital structure.

From February 2024 onward, the ratio shows minor fluctuations, oscillating between approximately 2.09 and 2.26. These variations indicate a relatively stable leverage level with slight adjustments in debt levels relative to equity.

Overall, the pattern suggests that Cintas's leverage was highest in mid-2022 and has since trended downward, indicating a strategic move toward reducing financial risk. The moderate and relatively stable leverage ratios over the recent period imply prudent financial management aimed at maintaining a balanced capital structure.