Cintas Corp. (NASDAQ:CTAS)

Current Assets

The current assets demonstrated an overall upward trend over the six-year period. Starting from approximately $2.24 billion in 2019, there was a gradual increase observed through 2020, reaching close to $2.31 billion. The following year, 2021, showed a more significant rise, peaking at approximately $2.84 billion. However, in 2022, there was a noticeable dip bringing the current assets down to around $2.63 billion. Subsequently, the assets recovered and increased in 2023 and 2024, reaching approximately $2.94 billion and $3.19 billion respectively. This pattern indicates growth with some volatility, particularly around 2022, after which the assets resumed their upward trajectory.

Adjusted Current Assets

Adjusted current assets followed a similar pattern to current assets, confirming the overall trend while factoring in certain adjustments. Beginning at about $2.27 billion in 2019, these assets rose steadily to approximately $2.37 billion in 2020. A pronounced increase occurred in 2021 with values nearing $2.86 billion. As with current assets, there was a decline in 2022 to roughly $2.64 billion, followed by increases in the subsequent years, reaching close to $2.95 billion in 2023 and approximately $3.20 billion in 2024. The consistency between adjusted and unadjusted figures suggests that the adjustments did not materially alter the trend but refined the evaluation of asset levels over time.

The annual financial data reveals several observable trends regarding the assets of the company over a six-year period, from May 31, 2019, to May 31, 2024.

Total assets

The total assets demonstrated a gradual upward trend throughout the period. Starting at approximately 7.44 billion US dollars in 2019, the total assets increased steadily each year, reaching nearly 9.17 billion US dollars by 2024. Notably, the increments between consecutive years are relatively consistent, indicating steady growth in asset base. There was a slight dip between 2021 and 2022, where total assets decreased from about 8.24 billion to 8.15 billion US dollars, but this was followed by a recovery and continued growth in subsequent years.

Adjusted total assets

The adjusted total assets also showed a consistent upward pattern in the timeframe analyzed. Starting at roughly 7.67 billion US dollars in 2019, the adjusted figures rose gradually to exceed 9.18 billion US dollars by 2024. Similar to the total assets, there appears to be a minor decline between 2021 and 2022, from approximately 8.25 billion to 8.16 billion US dollars, but the trend recuperated and maintained growth afterward. The adjusted total assets consistently stayed slightly higher than the total assets each year, reflecting adjustments made for more accurate or relevant asset valuation.

Overall, both metrics point to ongoing growth in the company’s asset base over the period assessed, with minor variability in the mid-term. The relationship between total and adjusted total assets suggests consistent adjustments that marginally increase the asset valuation year-over-year.

The analysis of the financial data reveals trends in the total liabilities and adjusted total liabilities of the company over a six-year period from May 31, 2019, to May 31, 2024.

Total liabilities

The total liabilities showed a generally increasing trend during the period. Starting at approximately US$4.43 billion in 2019, the liabilities remained relatively stable through 2020 but increased in the subsequent years, reaching about US$4.86 billion in 2024. There was a notable rise between 2021 and 2022, followed by slight fluctuation but an overall upward movement by the end of the term.

Adjusted total liabilities

Adjusted total liabilities followed a similar pattern with initial values around US$4.19 billion in 2019. These adjusted figures declined in 2020 to approximately US$4.05 billion, indicating a reduction in liabilities when adjustments are considered. Subsequently, adjusted liabilities increased each year except for a slight decrease observed in the year ending 2023. By 2024, adjusted total liabilities rose again, ending close to US$4.38 billion.

Overall, the data suggest that while total liabilities have generally increased over the six-year period, adjusted liabilities portray a more moderated growth with some years showing reductions, indicating the impact of adjustments on the reported financial obligations. The trends highlight ongoing liability management and variations possibly related to changes in accounting approaches or business conditions affecting the adjusted figures.

Shareholders' Equity

The shareholders' equity showed an overall increasing trend from May 31, 2019, to May 31, 2024. It started at 3,002,721 thousand US dollars in 2019 and rose to 4,316,372 thousand US dollars by 2024. There was a notable increase between 2020 and 2021, followed by a slight decline in 2022. The equity then resumed its upward trend in the subsequent periods through 2024.

Adjusted Shareholders' Equity

The adjusted shareholders' equity exhibited a consistent growth pattern throughout the observed period. Starting at 3,478,709 thousand US dollars in 2019, it steadily increased each year, reaching 4,809,798 thousand US dollars by 2024. This measure maintained more stability compared to the unadjusted shareholders' equity, with no declines observed in any year.

Comparative Analysis

Both shareholders' equity and adjusted shareholders' equity demonstrated a positive growth trajectory, indicating overall strengthening of the company’s equity position over the five-year time span. The adjusted measure remains consistently higher than the unadjusted figure, suggesting that adjustments may account for items such as unrealized gains, reserves, or other equity components that enhance the reported equity value.

Summary of Trends

The financial data points to a robust enhancement of equity values, with only a minor fluctuation in the unadjusted shareholders' equity in 2022. The upward trends reflect possible retained earnings growth, capital infusions, or revaluation effects. The adjusted equity's smooth increase further implies consistent underlying improvements in the company’s financial stability and net asset base.

The financial data exhibits various trends related to debt, equity, and capital over the six-year period ending May 31, 2024.

Total Reported Debt

The total reported debt demonstrates a fluctuating but generally downward trend, decreasing from 2,849,771 thousand US dollars in 2019 to 2,475,529 thousand US dollars in 2024. There was a notable dip in 2020 and 2023, indicating periodic reductions in debt levels followed by minor increases, with the overall trend suggesting efforts toward managing and reducing debt obligations.

Shareholders’ Equity

Shareholders’ equity shows a consistent upward trajectory beginning at 3,002,721 thousand US dollars in 2019 and rising steadily to 4,316,372 thousand US dollars in 2024. This increase reflects ongoing growth in equity value, notwithstanding a slight dip in 2022, signaling generally positive returns and value retention for shareholders.

Total Reported Capital

Total reported capital, which is the sum of total debt and shareholders’ equity, exhibits a gradual increase from 5,852,492 thousand US dollars in 2019 to 6,791,901 thousand US dollars in 2024. The fluctuations in debt and equity components contribute to this trend, with equity's persistent growth playing a significant role in the capital expansion.

Adjusted Total Debt

Adjusted total debt closely mirrors the trend in reported debt, starting at 3,048,635 thousand US dollars in 2019 and declining to 2,668,080 thousand US dollars in 2024. This suggests that the adjustments applied do not significantly alter the observed pattern of debt reduction over time.

Adjusted Shareholders’ Equity

The adjusted shareholders’ equity exhibits a steady increase from 3,478,709 thousand US dollars in 2019 to 4,809,798 thousand US dollars in 2024. Similar to reported equity, this increase indicates an overall strengthening in the equity base after adjustments, albeit at slightly higher levels compared to reported figures.

Adjusted Total Capital

Adjusted total capital follows a pattern of gradual growth, increasing from 6,527,344 thousand US dollars in 2019 to 7,477,878 thousand US dollars in 2024. The progression reflects the combined effect of rising adjusted equity and declining adjusted debt, underscoring an overall positive movement in the company's capital structure.

Overall, the data reveals a strategic emphasis on enhancing equity and managing debt levels efficiently. The consistent increase in both reported and adjusted shareholders' equity alongside a reduction or stabilization in debt levels has contributed to a healthier capital base over the years analyzed. This trend suggests an improved financial position with strengthened solvency and potential for sustainable growth.

Net Income Trend

The net income demonstrated an overall upward trajectory over the six-year period. Starting at $884,981 thousand in 2019, it experienced a slight dip in 2020 to $876,037 thousand, likely reflecting adverse conditions during that year. From 2021 onwards, there was a consistent increase, reaching $1,571,592 thousand by 2024. This represents a notable growth, indicating improved profitability and operational performance in recent years.

Adjusted Net Income Trend

The adjusted net income followed a somewhat similar pattern but exhibited more pronounced fluctuations. Beginning at $866,198 thousand in 2019, it declined to $771,223 thousand in 2020, signifying possible extraordinary items or adjustments impacting profitability during that period. Subsequently, it rebounded significantly in 2021 to $1,229,820 thousand and peaked in 2022 at $1,365,242 thousand. A minor decrease occurred in 2023, lowering the figure to $1,346,810 thousand, before rising again to $1,557,503 thousand in 2024. This volatility suggests that adjustments impacted the net income figures differently across the periods but the general direction remained positive.

Comparison Between Net Income and Adjusted Net Income

Throughout the period, the net income values were consistently slightly higher than the adjusted net income in most years, except for 2021 and 2022, where adjusted net income surpassed net income. This indicates that the adjustments applied had varying effects on presenting the company’s profitability. The convergence and occasional inversion between these two metrics imply that non-recurring items or accounting adjustments played a role but did not substantially alter the overall upward trend in profitability.