Debt to Equity
since 2005
Calculation
Cintas Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| May 31, 2024 | 0.57 | = | 2,475,529) | ÷ | 4,316,372) |
| May 31, 2023 | 0.64 | = | 2,486,405) | ÷ | 3,863,986) |
| May 31, 2022 | 0.85 | = | 2,795,506) | ÷ | 3,308,196) |
| May 31, 2021 | 0.69 | = | 2,541,903) | ÷ | 3,687,847) |
| May 31, 2020 | 0.79 | = | 2,539,705) | ÷ | 3,235,202) |
| May 31, 2019 | 0.95 | = | 2,849,771) | ÷ | 3,002,721) |
| May 31, 2018 | 0.84 | = | 2,535,309) | ÷ | 3,016,526) |
| May 31, 2017 | 1.36 | = | 3,133,524) | ÷ | 2,302,793) |
| May 31, 2016 | 0.71 | = | 1,300,000) | ÷ | 1,842,659) |
| May 31, 2015 | 0.67 | = | 1,300,000) | ÷ | 1,932,455) |
| May 31, 2014 | 0.59 | = | 1,300,980) | ÷ | 2,192,858) |
| May 31, 2013 | 0.59 | = | 1,309,166) | ÷ | 2,201,492) |
| May 31, 2012 | 0.60 | = | 1,284,802) | ÷ | 2,139,135) |
| May 31, 2011 | 0.56 | = | 1,286,125) | ÷ | 2,302,649) |
| May 31, 2010 | 0.31 | = | 786,053) | ÷ | 2,534,029) |
| May 31, 2009 | 0.33 | = | 786,656) | ÷ | 2,367,409) |
| May 31, 2008 | 0.42 | = | 943,806) | ÷ | 2,254,131) |
| May 31, 2007 | 0.41 | = | 881,215) | ÷ | 2,167,738) |
| May 31, 2006 | 0.38 | = | 798,742) | ÷ | 2,087,963) |
| May 31, 2005 | 0.22 | = | 472,591) | ÷ | 2,104,135) |
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 capital structure from 2005 to 2024 reveals a cyclical pattern of debt accumulation followed by a sustained period of equity growth and deleveraging. The overall trajectory indicates a transition from a low-leverage position to a peak in 2017, followed by a strategic reduction in the debt-to-equity ratio.
- Initial Leverage Expansion (2005–2010)
- During the early period, a gradual increase in leverage is observed, with the debt-to-equity ratio rising from 0.22 in 2005 to 0.42 by 2008. This coincided with total debt increasing from 472.6 million to 943.8 million US dollars. A temporary contraction occurred in 2009 and 2010, where the ratio declined to 0.31 as total debt decreased to 786 million US dollars.
- Consistent Leverage Growth (2011–2016)
- A sustained upward trend in financial leverage began in 2011. Total debt rose to approximately 1.3 billion US dollars and remained relatively stable through 2016. However, the debt-to-equity ratio climbed steadily from 0.56 to 0.71, indicating a shift in the balance between borrowed funds and shareholders' equity.
- Peak Leverage Event (2017)
- A significant outlier occurred on May 31, 2017, marked by a sharp increase in total debt to 3.13 billion US dollars. This surge resulted in a peak debt-to-equity ratio of 1.36, the highest recorded in the analyzed period, representing a substantial increase in financial risk and capital utilization.
- Equity-Driven Deleveraging (2018–2024)
- Following the 2017 peak, a clear trend of deleveraging is evident. While total debt remained elevated compared to pre-2017 levels—fluctuating between 2.4 and 2.8 billion US dollars—shareholders' equity grew aggressively from 3.0 billion US dollars in 2018 to 4.3 billion US dollars in 2024. This growth in equity effectively diluted the impact of the debt, driving the debt-to-equity ratio down from 0.84 in 2018 to 0.57 by May 31, 2024.
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Comparison to Industry (Industrials)
Cintas Corp., debt to equity, long-term trends, comparison to industry (industrials)
| Cintas Corp. | Industrials | |
|---|---|---|
| May 31, 2024 | 0.57 | 1.38 |
| May 31, 2023 | 0.64 | 1.52 |
| May 31, 2022 | 0.85 | 1.42 |
| May 31, 2021 | 0.69 | 1.37 |
| May 31, 2020 | 0.79 | 1.82 |
| May 31, 2019 | 0.95 | 1.82 |
| May 31, 2018 | 0.84 | 1.85 |
| May 31, 2017 | 1.36 | 1.65 |
| May 31, 2016 | 0.71 | 1.54 |
| May 31, 2015 | 0.67 | 1.51 |
| May 31, 2014 | 0.59 | 1.89 |
| May 31, 2013 | 0.59 | 1.79 |
| May 31, 2012 | 0.60 | 2.29 |
| May 31, 2011 | 0.56 | 2.60 |
| May 31, 2010 | 0.31 | 2.68 |
| May 31, 2009 | 0.33 | 3.01 |
| May 31, 2008 | 0.42 | 3.54 |
| May 31, 2007 | 0.41 | 2.73 |
| May 31, 2006 | 0.38 | 2.49 |
| May 31, 2005 | 0.22 | 2.42 |
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).