Cintas Corporation (CTAS)

Interest coverage

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,068,630	1,804,380	1,587,610	1,385,960	1,163,360
Interest expense	US$ in thousands	100,740	111,232	88,844	98,210	105,393
Interest coverage		20.53	16.22	17.87	14.11	11.04

May 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,068,630K ÷ $100,740K
= 20.53

The interest coverage ratio for Cintas Corporation has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations through its operating income. In May 2024, the interest coverage ratio reached 20.53, reflecting a significant increase from the ratios of the previous years: 16.22 in 2023, 17.87 in 2022, 14.11 in 2021, and 11.04 in 2020.

This upward trend suggests that Cintas has been generating more operating income relative to its interest expenses, which is a positive indicator of the company's financial health and stability. The consistent improvement in the interest coverage ratio demonstrates Cintas' capacity to comfortably cover its interest payments, reducing the risk of default and potentially signaling strong operational performance and profitability.