Cintas Corporation (CTAS)

Financial leverage 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
Total assets	US$ in thousands	9,168,820	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	7,669,880	7,901,980	7,887,340	7,661,900
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
Financial leverage ratio		2.12	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	2.37	2.38	2.54	2.51

May 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,168,820K ÷ $4,316,370K
= 2.12

The financial leverage ratio of Cintas Corporation has fluctuated over the past several quarters, ranging from 2.12 to 2.56. The ratio indicates the company's mix of debt and equity financing. A higher financial leverage ratio suggests that the company relies more on debt to finance its operations, which can amplify returns but also increases financial risk.

Cintas Corporation's financial leverage ratio generally remained above 2.0 over the period, indicating a significant reliance on debt financing. The peak ratio of 2.56 in August 2022 suggests a higher proportion of debt relative to equity in the company's capital structure at that time. The subsequent decreases in the ratio towards 2.19 in February 2021 indicate potential adjustments in the company's capital structure or improved financial health.

It is essential for investors and stakeholders to monitor Cintas Corporation's financial leverage ratio over time to assess the company's risk profile and financial stability. Fluctuations in this ratio can reflect changes in the company's capital structure and its ability to manage debt effectively.