Cintas Corp. (NASDAQ:CTAS)

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Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Cintas Corp., adjusted total assets

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Total assets	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	198,864)
Add: Allowance for credit losses	17,914)	14,926)	12,918)	12,097)	62,167)	37,809)
After Adjustment
Adjusted total assets	9,186,731)	8,561,282)	8,160,174)	8,248,920)	7,732,052)	7,673,335)

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

Total assets and adjusted total assets exhibited a consistent upward trajectory over the six-year period ending May 31, 2024, characterized by steady growth and a minor contraction in 2022.

Total Asset Growth Trajectory: Total assets increased from 7,436,662 thousand US dollars in 2019 to 9,168,817 thousand US dollars in 2024, representing a cumulative growth of approximately 23.3%. The most significant year-over-year increases occurred between 2020 and 2021 and between 2023 and 2024. A slight decrease of 1.1% was recorded in 2022, which was subsequently offset by growth in the following two fiscal years.
Adjusted Asset Comparison: Adjusted total assets mirrored the movement of total assets throughout the period, maintaining a positive correlation. Adjusted total assets grew from 7,673,335 thousand US dollars in 2019 to 9,186,731 thousand US dollars in 2024. The synchronization between the two metrics suggests that the factors driving the overall asset base expanded uniformly across both reported and adjusted figures.
Analysis of Asset Adjustments: A marked reduction in the variance between total assets and adjusted total assets is observed. In 2019, the adjustment amount was 236,673 thousand US dollars, representing approximately 3.2% of total assets. By 2024, this variance decreased to 17,914 thousand US dollars, or approximately 0.2% of total assets. This trend indicates a convergence of the two values, suggesting that the adjustments have become increasingly immaterial to the overall financial position over time.

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Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Cintas Corp., adjusted total liabilities

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Total liabilities	4,852,445)	4,682,370)	4,839,060)	4,548,976)	4,434,683)	4,433,941)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	198,864)
Less: Deferred tax liabilities²	475,512)	498,356)	473,777)	386,647)	388,579)	438,179)
After Adjustment
Adjusted total liabilities	4,376,933)	4,184,014)	4,365,283)	4,162,329)	4,046,104)	4,194,626)

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Deferred tax liabilities. See details »

Between May 31, 2019, and May 31, 2024, total liabilities exhibited a general upward trajectory, although the progression was non-linear. The figures remained relatively stable between 2019 and 2020, followed by a period of growth that reached a high of US$ 4,839,060 thousand in 2022. After a moderate contraction in 2023, liabilities rose to a period peak of US$ 4,852,445 thousand by May 31, 2024.

Total Liabilities Volatility: An overall increase of approximately 9.4% is observed from 2019 to 2024. The most significant expansion occurred between 2021 and 2022, followed by a temporary reduction of approximately 3.4% in 2023 before returning to growth in the final reporting period.
Adjusted Total Liabilities Performance: Adjusted liabilities followed a directional pattern similar to total liabilities but remained consistently lower. A notable decline occurred between 2019 and 2020, where values dropped from US$ 4,194,626 thousand to US$ 4,046,104 thousand. Following this dip, the metric recovered steadily, ending the period at US$ 4,376,933 thousand in 2024.
Variance Analysis: The gap between total and adjusted liabilities widened significantly over the six-year period. The difference was US$ 239,315 thousand in 2019 and increased to US$ 475,512 thousand by 2024. This expansion indicates that the adjustments applied to the total liabilities became more substantial over time, nearly doubling in magnitude by the end of the analyzed timeframe.

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Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Cintas Corp., adjusted shareholders’ equity

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Adjustments
Less: Net deferred tax asset (liability)¹	(475,512)	(498,356)	(473,777)	(386,647)	(388,579)	(438,179)
Add: Allowance for credit losses	17,914)	14,926)	12,918)	12,097)	62,167)	37,809)
After Adjustment
Adjusted shareholders’ equity	4,809,798)	4,377,268)	3,794,891)	4,086,591)	3,685,948)	3,478,709)

¹ Net deferred tax asset (liability). See details »

An analysis of the equity positions from May 31, 2019, to May 31, 2024, reveals a general upward trajectory in both reported and adjusted shareholders' equity, interrupted by a notable contraction in the 2022 fiscal year.

Shareholders' Equity Growth Trends: Reported shareholders' equity increased from 3,002,721 thousand US$ in 2019 to 4,316,372 thousand US$ by 2024. This represents a cumulative growth of approximately 43.7%. While the trend was predominantly positive, a significant decline occurred on May 31, 2022, where equity fell to 3,308,196 thousand US$ before recovering strongly in 2023 and 2024.
Adjusted Shareholders' Equity Performance: Adjusted shareholders' equity mirrored the movement of reported equity, beginning at 3,478,709 thousand US$ in 2019 and concluding at 4,809,798 thousand US$ in 2024. The adjusted metric also experienced a dip in 2022 to 3,794,891 thousand US$, followed by a consistent recovery over the final two reporting periods.
Analysis of Equity Adjustments: A consistent positive variance is observed between reported and adjusted shareholders' equity throughout the period analyzed. The absolute difference fluctuated, reaching a low of 398,744 thousand US$ in 2021 and a peak of 513,282 thousand US$ in 2023. This indicates that the adjusted valuation consistently exceeds reported equity, suggesting the inclusion of specific financial adjustments that enhance the perceived net worth of the entity.

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Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Cintas Corp., adjusted capitalization table

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Debt due within one year	449,595)	—)	311,574)	899,070)	—)	312,264)
Debt due after one year	2,025,934)	2,486,405)	2,483,932)	1,642,833)	2,539,705)	2,537,507)
Total reported debt	2,475,529)	2,486,405)	2,795,506)	2,541,903)	2,539,705)	2,849,771)
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Total reported capital	6,791,901)	6,350,391)	6,103,702)	6,229,750)	5,774,907)	5,852,492)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	198,864)
Add: Operating lease liabilities, current²	45,727)	43,710)	43,872)	43,850)	43,031)	—)
Add: Operating lease liabilities, long-term³	146,824)	138,278)	129,064)	130,774)	122,695)	—)
Adjusted total debt	2,668,080)	2,668,393)	2,968,442)	2,716,527)	2,705,431)	3,048,635)
Adjustments to Equity
Less: Net deferred tax asset (liability)⁴	(475,512)	(498,356)	(473,777)	(386,647)	(388,579)	(438,179)
Add: Allowance for credit losses	17,914)	14,926)	12,918)	12,097)	62,167)	37,809)
Adjusted shareholders’ equity	4,809,798)	4,377,268)	3,794,891)	4,086,591)	3,685,948)	3,478,709)
After Adjustment
Adjusted total capital	7,477,878)	7,045,661)	6,763,333)	6,803,118)	6,391,379)	6,527,344)

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Operating lease liabilities, current. See details »

³ Operating lease liabilities, long-term. See details »

⁴ Net deferred tax asset (liability). See details »

The financial trajectory from 2019 to 2024 indicates a steady expansion of the total capitalization base, characterized by a strategic shift toward increased equity and a controlled management of debt obligations.

Debt Obligations and Adjustments: Total reported debt exhibited a fluctuating but generally downward trend, moving from 2,849,771 thousand US$ in 2019 to 2,475,529 thousand US$ by May 31, 2024. A consistent positive variance is observed between reported and adjusted debt figures throughout the six-year period, with adjusted debt figures remaining higher, indicating the inclusion of additional liabilities in the adjusted capitalization analysis.
Shareholders' Equity Growth: Shareholders' equity demonstrated a strong and consistent upward trend, increasing from 3,002,721 thousand US$ in 2019 to 4,316,372 thousand US$ in 2024. This growth is mirrored in the adjusted shareholders' equity, which rose from 3,478,709 thousand US$ to 4,809,798 thousand US$, suggesting a significant strengthening of the company's internal funding capacity and book value.
Capitalization Structure and Solvency: Total reported capital grew from 5,852,492 thousand US$ in 2019 to 6,791,901 thousand US$ in 2024, while adjusted total capital rose from 6,527,344 thousand US$ to 7,477,878 thousand US$. The combination of declining debt levels and rising equity indicates a progressive deleveraging of the balance sheet, resulting in a more conservative and stable capital structure over the analyzed period.

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Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Cintas Corp., adjusted net income

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Adjustments
Add: Deferred income tax expense (benefit)¹	(30,500)	26,931)	51,635)	(42,080)	(13,292)	34,759)
Add: Increase (decrease) in allowance for credit losses	2,988)	2,008)	821)	(23,336)	24,358)	4,299)
Less: Income (loss) from discontinued operations, net of tax	—)	—)	—)	—)	(323)	2,346)
Add: Other comprehensive income (loss), net of tax	13,423)	(30,139)	77,029)	184,268)	(116,203)	(55,495)
After Adjustment
Adjusted net income	1,557,503)	1,346,810)	1,365,242)	1,229,820)	771,223)	866,198)

¹ Deferred income tax expense (benefit). See details »

Net income and adjusted net income exhibit a sustained upward trajectory over the six-year period ending May 31, 2024, characterized by a period of volatility between 2020 and 2022 followed by stabilized growth.

Net Income Growth Trends: Reported net income demonstrated resilience, recovering from a marginal decline between 2019 and 2020. Following the 2020 low of 876,037 thousand USD, the figure experienced consistent annual growth, culminating in 1,571,592 thousand USD by May 31, 2024. This represents a significant expansion in overall profitability over the analyzed timeframe.
Adjusted Net Income Performance: Adjusted net income exhibited higher volatility than reported net income in the initial years. A notable contraction occurred in 2020, reaching 771,223 thousand USD, which was followed by a sharp increase through 2022. After a slight dip in 2023, the metric rose to 1,557,503 thousand USD in 2024, mirroring the broader growth trend of the organization.
Variance Analysis and Convergence: The relationship between reported and adjusted net income shifted significantly over the period. In 2020, reported net income was substantially higher than adjusted net income, with a difference of approximately 104,814 thousand USD. This trend reversed in 2021 and 2022, where adjusted net income exceeded reported figures, suggesting the impact of non-recurring expenses or specific accounting adjustments. By 2023 and 2024, the variance narrowed considerably, indicating a convergence of reported and adjusted earnings and a reduction in the impact of one-time financial adjustments.

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