Current Ratio
since 2005
Calculation
Cintas Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| May 31, 2024 | 1.74 | = | 3,185,207) | ÷ | 1,828,519) |
| May 31, 2023 | 2.39 | = | 2,938,459) | ÷ | 1,230,062) |
| May 31, 2022 | 1.84 | = | 2,631,983) | ÷ | 1,432,890) |
| May 31, 2021 | 1.47 | = | 2,843,309) | ÷ | 1,934,085) |
| May 31, 2020 | 2.61 | = | 2,309,699) | ÷ | 885,195) |
| May 31, 2019 | 1.98 | = | 2,236,280) | ÷ | 1,127,733) |
| May 31, 2018 | 2.55 | = | 1,977,932) | ÷ | 775,857) |
| May 31, 2017 | 1.73 | = | 1,954,478) | ÷ | 1,130,852) |
| May 31, 2016 | 1.95 | = | 1,590,035) | ÷ | 815,555) |
| May 31, 2015 | 2.79 | = | 1,735,807) | ÷ | 621,058) |
| May 31, 2014 | 2.87 | = | 1,805,681) | ÷ | 630,131) |
| May 31, 2013 | 2.92 | = | 1,624,826) | ÷ | 556,256) |
| May 31, 2012 | 2.30 | = | 1,541,568) | ÷ | 670,891) |
| May 31, 2011 | 3.92 | = | 1,700,777) | ÷ | 434,139) |
| May 31, 2010 | 3.97 | = | 1,524,944) | ÷ | 383,682) |
| May 31, 2009 | 4.00 | = | 1,270,273) | ÷ | 317,465) |
| May 31, 2008 | 3.49 | = | 1,282,336) | ÷ | 367,242) |
| May 31, 2007 | 2.87 | = | 1,156,736) | ÷ | 403,038) |
| May 31, 2006 | 2.86 | = | 1,178,008) | ÷ | 411,828) |
| May 31, 2005 | 3.27 | = | 1,166,544) | ÷ | 356,481) |
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), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$ in thousands
An analysis of the liquidity position from 2005 to 2024 reveals a transition from a highly conservative liquidity posture to a more moderate operational approach. While current assets have grown consistently over the two-decade period, current liabilities have experienced more aggressive growth and volatility, resulting in a general downward trend in the current ratio.
- Asset and Liability Growth
- Current assets increased from 1,166,544 thousand US dollars in 2005 to 3,185,207 thousand US dollars in 2024. During the same period, current liabilities rose from 356,481 thousand US dollars to 1,828,519 thousand US dollars. Because the growth in liabilities has outpaced the growth in assets on a percentage basis over the long term, there has been a systemic compression of the liquidity ratio.
- Current Ratio Phases
- The current ratio exhibited three distinct phases. From 2005 to 2011, a high liquidity buffer was maintained, with the ratio peaking at 4.00 in 2009. A period of adjustment occurred between 2012 and 2017, characterized by a steady decline that brought the ratio down to 1.73 by May 31, 2017. In the most recent period from 2018 to 2024, the ratio has fluctuated between 1.47 and 2.39, suggesting a shift toward a more lean working capital management strategy.
- Significant Volatility Points
- Notable fluctuations occurred between 2020 and 2022. A sharp increase in current liabilities to 1,934,085 thousand US dollars in 2021 resulted in the lowest recorded current ratio of 1.47. This was followed by a recovery in 2022 and 2023, where the ratio climbed to 2.39, before retreating to 1.74 in 2024.
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Comparison to Industry (Industrials)
Cintas Corp., current ratio, long-term trends, comparison to industry (industrials)
| Cintas Corp. | Industrials | |
|---|---|---|
| May 31, 2024 | 1.74 | 1.19 |
| May 31, 2023 | 2.39 | 1.16 |
| May 31, 2022 | 1.84 | 1.20 |
| May 31, 2021 | 1.47 | 1.29 |
| May 31, 2020 | 2.61 | 1.41 |
| May 31, 2019 | 1.98 | 1.16 |
| May 31, 2018 | 2.55 | 1.13 |
| May 31, 2017 | 1.73 | 1.24 |
| May 31, 2016 | 1.95 | 1.22 |
| May 31, 2015 | 2.79 | 1.24 |
| May 31, 2014 | 2.87 | 1.26 |
| May 31, 2013 | 2.92 | 1.33 |
| May 31, 2012 | 2.30 | 1.30 |
| May 31, 2011 | 3.92 | 1.30 |
| May 31, 2010 | 3.97 | 1.28 |
| May 31, 2009 | 4.00 | 1.23 |
| May 31, 2008 | 3.49 | 1.06 |
| May 31, 2007 | 2.87 | 1.07 |
| May 31, 2006 | 2.86 | 1.05 |
| May 31, 2005 | 3.27 | 1.05 |
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), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).