Name: Cintas Corp. (NASDAQ:CTAS) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Cintas Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Accounts payable	339,166)	302,292)	251,504)	230,786)	230,995)	226,020)
Accrued compensation and related liabilities	214,130)	239,086)	236,992)	241,469)	127,417)	155,509)
Insurance reserve	176,758)	155,046)	163,958)	156,447)	165,427)	165,667)
Employee benefit related liabilities	188,367)	167,095)	146,237)	129,348)	134,846)	123,794)
Dividends	137,609)	117,565)	97,525)	79,135)	—)	—)
Estimated legal reserves	45,000)	27,000)	—)	—)	—)	—)
Accrued interest	15,050)	15,151)	15,448)	24,420)	24,538)	24,687)
Other	198,499)	150,647)	165,780)	129,560)	131,842)	119,792)
Accrued liabilities	761,283)	632,504)	588,948)	518,910)	456,653)	433,940)
Income taxes, current	18,618)	12,470)	—)	—)	27,099)	—)
Operating lease liabilities, current	45,727)	43,710)	43,872)	43,850)	43,031)	—)
Debt due within one year	449,595)	—)	311,574)	899,070)	—)	312,264)
Current liabilities	1,828,519)	1,230,062)	1,432,890)	1,934,085)	885,195)	1,127,733)
Debt due after one year	2,025,934)	2,486,405)	2,483,932)	1,642,833)	2,539,705)	2,537,507)
Deferred income taxes	475,512)	498,356)	473,777)	386,647)	388,579)	438,179)
Operating lease liabilities, long-term	146,824)	138,278)	129,064)	130,774)	122,695)	—)
Accrued liabilities	375,656)	329,269)	319,397)	454,637)	498,509)	330,522)
Long-term liabilities	3,023,926)	3,452,308)	3,406,170)	2,614,891)	3,549,488)	3,306,208)
Total liabilities	4,852,445)	4,682,370)	4,839,060)	4,548,976)	4,434,683)	4,433,941)
Preferred stock, no par value, none outstanding	—)	—)	—)	—)	—)	—)
Common stock, no par value, and paid-in capital	2,305,301)	2,031,542)	1,771,917)	1,516,202)	1,274,210)	1,068,256)
Retained earnings	10,617,955)	9,597,315)	8,719,163)	7,877,015)	7,296,509)	6,691,236)
Treasury stock	(8,698,085)	(7,842,649)	(7,290,801)	(5,736,258)	(5,182,137)	(4,717,619)
Accumulated other comprehensive income (loss)	91,201)	77,778)	107,917)	30,888)	(153,380)	(39,152)
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Total liabilities and shareholders’ equity	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)

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).

The balance sheet reflects a period of steady expansion in total capitalization, with total liabilities and shareholders' equity increasing from 7.44 billion US$ in 2019 to 9.17 billion US$ by 2024. While total liabilities have grown modestly, the primary driver of this expansion has been a substantial increase in shareholders' equity, indicating a strengthening of the company's net asset position.

Liability Structure and Debt Management: Total liabilities have remained relatively stable, rising from 4.43 billion US$ in 2019 to 4.85 billion US$ in 2024. However, there is significant volatility in the composition of current liabilities, which peaked in 2021 and 2024. This fluctuation is primarily attributed to the timing of debt maturities, as evidenced by the sharp increase in debt due within one year in 2021 and 2024.; Long-term debt exhibits a cyclical pattern, decreasing in 2021 before recovering and subsequently declining to 2.03 billion US$ in 2024. Accrued liabilities have shown a consistent upward trajectory, increasing from 433.9 million US$ in 2019 to 761.3 million US$ in 2024, reflecting growth in operational obligations such as accounts payable and employee benefit-related liabilities.
Equity Composition and Capital Allocation: Shareholders' equity has grown by approximately 43.8% over the period, rising from 3.00 billion US$ in 2019 to 4.32 billion US$ in 2024. This growth is underpinned by a robust increase in retained earnings, which climbed from 6.69 billion US$ to 10.62 billion US$ during the same timeframe.; A significant counter-trend is observed in treasury stock, which expanded from -4.72 billion US$ in 2019 to -8.70 billion US$ in 2024. This suggests an aggressive and consistent share repurchase strategy, which has offset a portion of the growth in retained earnings and paid-in capital.; Common stock and paid-in capital have more than doubled, increasing from 1.07 billion US$ in 2019 to 2.31 billion US$ in 2024, contributing to the overall increase in the equity base.

The overall financial trend indicates a shift toward a more equity-heavy capital structure. The company has successfully leveraged its earnings growth to fund both significant share buybacks and an increase in total equity, while maintaining a stable level of total liabilities despite fluctuations in short-term debt obligations.

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