Cintas Corporation (CTAS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,768,945	2,322,194	2,232,723	2,143,683	2,081,473	1,999,866	1,923,284	1,866,212	1,804,380	1,737,248	1,697,724	1,633,730	1,588,219	1,540,253	1,459,090	1,430,817	1,385,792	1,236,878	1,224,810	1,206,151
Interest expense (ttm)	US$ in thousands	101,108	101,124	101,890	101,815	100,740	102,437	105,726	108,056	111,232	108,517	101,728	94,710	88,844	90,337	92,859	95,514	98,210	99,611	101,002	102,622
Interest coverage		17.50	22.96	21.91	21.05	20.66	19.52	18.19	17.27	16.22	16.01	16.69	17.25	17.88	17.05	15.71	14.98	14.11	12.42	12.13	11.75

May 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,768,945K ÷ $101,108K
= 17.50

The history of Cintas Corporation’s interest coverage ratio reveals a pattern of consistent and generally increasing ability to meet interest obligations over the analyzed period. Starting from a ratio of 11.75 as of August 31, 2020, the interest coverage steadily climbs, reaching a peak of approximately 22.96 in February 2028.

Throughout this timeframe, the ratio demonstrates a positive trend, indicating that EBITDA (or a similar earnings measure used in the ratio) has been increasing relative to interest expenses. Notably, the ratio experienced some fluctuations between reports, with minor decreases observed in certain periods—such as from 17.88 in May 2022 down slightly to 16.69 in November 2022—but these declines are relatively short-lived and followed by recovery and further growth.

From a risk perspective, a consistently high or rising interest coverage ratio suggests that Cintas has maintained strong earnings relative to its interest expenses, thus supporting a relatively low credit risk profile. The ratios in the upper teens and low twenties indicate ample earnings cushioning, which provides financial flexibility and resilience against potential earnings volatility.

Overall, the data indicates that Cintas Corporation has maintained a robust interest coverage ratio throughout this period, reflecting sound financial health regarding its ability to service interest obligations with its operating earnings.