Name: Cintas Corp. (NASDAQ:CTAS) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Cintas Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Depreciation	280,866)	257,041)	249,376)	243,836)	235,905)	223,631)
Amortization of intangible assets and capitalized contract costs	161,518)	152,121)	150,325)	144,115)	143,148)	136,462)
Stock-based compensation	116,986)	103,621)	109,308)	112,035)	115,435)	139,210)
Gain on equity method investment transaction	—)	—)	(30,151)	—)	—)	—)
Net gain on sale of operating assets	—)	—)	(12,129)	(22,030)	—)	(3,200)
Long-lived asset impairment	—)	—)	—)	5,114)	9,220)	—)
Gain on sale of a cost method investment	—)	—)	—)	—)	—)	(69,373)
Deferred income taxes	(28,912)	23,233)	52,110)	(42,242)	(16,252)	31,708)
Accounts receivable, net	(91,399)	(151,771)	(100,392)	(32,576)	39,681)	(94,918)
Inventories, net	95,766)	(35,658)	16,194)	(75,501)	(74,773)	(60,039)
Uniforms and other rental items in service	(22,815)	(98,252)	(111,332)	(35,659)	12,773)	(90,228)
Prepaid expenses and other current assets and capitalized contract costs	(117,674)	(132,173)	(28,581)	(102,600)	(110,248)	(100,765)
Accounts payable	36,896)	53,369)	22,697)	(2,604)	2,629)	12,276)
Accrued compensation and related liabilities	(27,013)	2,711)	(3,625)	113,769)	(26,476)	15,321)
Accrued liabilities and other	97,750)	41,314)	(9,241)	(6,735)	49,906)	30,910)
Income taxes, current	6,220)	34,248)	(2,691)	(49,150)	34,498)	11,886)
Change in current assets and liabilities, net of acquisitions of businesses	(22,269)	(286,212)	(216,971)	(191,056)	(72,010)	(275,557)
Adjustments to reconcile net income to net cash provided by operating activities	508,189)	249,804)	301,868)	249,772)	415,446)	182,881)
Net cash provided by operating activities	2,079,781)	1,597,814)	1,537,625)	1,360,740)	1,291,483)	1,067,862)
Capital expenditures	(409,469)	(331,109)	(240,672)	(143,470)	(230,289)	(276,719)
Purchases of investments	(7,546)	(4,566)	(6,076)	(4,299)	(10,031)	(17,841)
Proceeds from sale of operating assets, net of cash disposed	—)	—)	15,347)	31,705)	13,300)	3,200)
Proceeds from sale of a cost method investment	—)	—)	—)	—)	—)	73,342)
Acquisitions of businesses, net of cash acquired	(186,837)	(46,357)	(164,228)	(10,038)	(53,720)	(9,813)
Other, net	(4,779)	(6,640)	(7,006)	(11,113)	(4,658)	(7,807)
Net cash used in investing activities	(608,631)	(388,672)	(402,635)	(137,215)	(285,398)	(235,638)
Issuance (payments) of commercial paper, net	—)	(261,200)	261,200)	—)	(112,500)	112,500)
Proceeds from issuance of debt	—)	—)	1,190,506)	—)	—)	200,000)
Repayment of debt	(13,450)	(50,000)	(1,200,000)	—)	(200,000)	—)
Proceeds from exercise of stock-based compensation awards	1,370)	3,021)	117,737)	129,957)	90,519)	65,371)
Dividends paid	(530,909)	(449,917)	(375,119)	(451,327)	(267,956)	(220,764)
Repurchase of common stock	(700,033)	(398,865)	(1,525,873)	(554,121)	(464,518)	(1,016,300)
Other, net	(10,468)	(15,875)	(6,394)	(4,377)	(752)	(14,112)
Net cash used in financing activities	(1,253,490)	(1,172,836)	(1,537,943)	(879,868)	(955,207)	(873,305)
Effect of exchange rate changes on cash and cash equivalents	206)	(2,628)	(216)	4,581)	(2,121)	(998)
Net increase (decrease) in cash and cash equivalents	217,866)	33,678)	(403,169)	348,238)	48,757)	(42,079)
Cash and cash equivalents at beginning of year	124,149)	90,471)	493,640)	145,402)	96,645)	138,724)
Cash and cash equivalents at end of year	342,015)	124,149)	90,471)	493,640)	145,402)	96,645)

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).

Net cash provided by operating activities has exhibited a consistent upward trajectory over the six-year period, increasing from $1.06 billion in 2019 to $2.07 billion in 2024. This growth is primarily driven by a steady expansion in net income, which rose from $884.9 million to $1.57 billion. The ability to generate operating cash flow in excess of net income indicates a high quality of earnings, supported by significant non-cash adjustments including depreciation and amortization of intangible assets.

Operating Cash Flow Dynamics: A sustained increase in net income is observed, with a compound growth pattern leading to a peak of $1.57 billion in 2024. Non-cash charges have also scaled upward; depreciation rose from $223.6 million in 2019 to $280.8 million in 2024, reflecting a growing asset base. Working capital movements have generally acted as a drag on cash flow, with net changes in current assets and liabilities remaining negative for five of the six years analyzed, although this pressure eased significantly in 2024 to a net outflow of $22.2 million compared to $286.2 million in 2023.
Investment and Capital Expenditure Trends: Investing activities are characterized by increasing capital expenditures and strategic acquisitions. Capital expenditures grew from $276.7 million in 2019 to a period high of $409.4 million in 2024, signaling aggressive reinvestment in infrastructure. Acquisitions of businesses have been utilized intermittently, with substantial outflows observed in 2022 ($164.2 million) and 2024 ($186.8 million), demonstrating a commitment to inorganic growth.
Financing and Shareholder Returns: The financing strategy is defined by aggressive capital return to shareholders through dividends and stock repurchases. Dividends paid have more than doubled, increasing from $220.7 million in 2019 to $530.9 million in 2024. Common stock repurchases have been volatile but substantial, peaking at $1.52 billion in 2022. Debt management has been utilized to support these activities, evidenced by a significant issuance of debt totaling $1.19 billion in 2022, which was largely offset by corresponding repayments in the same period.
Liquidity and Cash Position: The end-of-year cash and cash equivalents balance has fluctuated significantly, reflecting the timing of large-scale stock repurchases and debt movements. After a low of $90.4 million in 2022, the cash position strengthened to $342.0 million by May 31, 2024. This recovery is supported by the substantial increase in net cash provided by operating activities, which has provided a larger cushion for both capital expenditures and shareholder distributions.

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