Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage

Cintas Corp., solvency ratios (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Debt Ratios
Debt to equity	0.62	0.66	0.57	0.58	0.67	0.61	0.64	0.75	0.85	0.93	0.85	0.87	0.69	0.79	0.69	0.67	0.71	0.70	0.79	0.82	0.88	0.94
Debt to equity (including operating lease liability)	0.66	0.71	0.62	0.63	0.72	0.65	0.69	0.80	0.90	0.98	0.90	0.92	0.74	0.84	0.74	0.71	0.75	0.75	0.84	0.88	0.94	1.00
Debt to capital	0.38	0.40	0.36	0.37	0.40	0.38	0.39	0.43	0.46	0.48	0.46	0.46	0.41	0.44	0.41	0.40	0.41	0.41	0.44	0.45	0.47	0.49
Debt to capital (including operating lease liability)	0.40	0.41	0.38	0.39	0.42	0.40	0.41	0.45	0.47	0.50	0.47	0.48	0.42	0.46	0.42	0.41	0.43	0.43	0.46	0.47	0.48	0.50
Debt to assets	0.28	0.29	0.27	0.28	0.30	0.28	0.29	0.32	0.35	0.36	0.34	0.35	0.31	0.33	0.31	0.30	0.30	0.32	0.33	0.35	0.35	0.38
Debt to assets (including operating lease liability)	0.30	0.31	0.29	0.30	0.33	0.31	0.31	0.34	0.37	0.38	0.36	0.37	0.33	0.35	0.33	0.32	0.32	0.34	0.35	0.37	0.37	0.40
Financial leverage	2.18	2.26	2.12	2.12	2.21	2.14	2.21	2.33	2.46	2.56	2.46	2.48	2.25	2.37	2.23	2.19	2.35	2.23	2.37	2.38	2.54	2.51
Coverage Ratios
Interest coverage	21.86	20.98	20.59	19.47	18.16	17.26	16.22	16.01	16.69	17.25	17.87	17.04	15.71	14.98	14.11	12.42	12.13	11.76	11.04	12.08	11.64	11.88

The financial leverage ratios demonstrated moderate fluctuations over the analyzed periods, with values generally ranging between 2.1 and 2.6. Despite some variations, the leverage level remained relatively stable, suggesting consistent use of debt relative to equity in the company's capital structure.

The debt to equity ratio showed a gradual decline from approximately 0.94 in mid-2019 to a low near 0.57 by mid-2024, indicating a decreasing reliance on debt financing compared to shareholders' equity. The inclusion of operating lease liabilities slightly increased these ratios, but the overall downward trend persisted, revealing a cautious approach toward total indebtedness.

Similarly, debt to capital ratios trended downward, evolving from near 0.49 at the start to around 0.36 by the final periods. This subtle improvement signals enhanced capital structure health, with lower debt levels serving as a portion of total capital. The adjusted figures including operating leases consistently exceeded the standard ratio by a small margin but mirrored the declining pattern.

The debt to assets ratio also declined modestly over time, moving from roughly 0.38 to slightly under 0.3. This suggests a reduction in the proportion of assets financed through debt. When operating lease liabilities were accounted for, the ratio followed the same trajectory but maintained a consistently higher level, underscoring the impact of lease obligations on asset financing.

Interest coverage ratios exhibited a robust upward trend, increasing from about 11.9 to nearly 22 by mid-2024. This marked improvement reflects the company's growing ability to meet interest obligations from operating earnings, indicating enhanced profitability and lower credit risk. The steady rise in this ratio points to improving financial health and operational efficiency.

In summary, the overall financial metrics indicate a strengthening balance sheet with progressively lower debt dependence and improved earnings capacity to cover interest expenses. The consistent decrease in leverage and debt ratios combined with rising interest coverage suggests prudent financial management and a more stable capital structure over the periods examined.

Debt to Equity Ratio: Decreased steadily from 0.94 to 0.57, signaling reduced debt reliance.
Debt to Equity Ratio (Including Operating Lease Liability): Consistently higher than standard ratio but similarly declining, reflecting lease obligations.
Debt to Capital Ratio: Declined from 0.49 to 0.36, indicating deleveraging and capital structure improvement.
Debt to Capital Ratio (Including Operating Lease Liability): Higher values mirrored the standard ratio’s downward trend.
Debt to Assets Ratio: Reduced moderately from 0.38 to 0.29, showing a lower share of debt financing assets.
Debt to Assets Ratio (Including Operating Lease Liability): Followed the same trend at elevated levels due to lease commitments.
Financial Leverage: Maintained relative stability around 2.1 to 2.6, reflecting consistent use of leverage.
Interest Coverage Ratio: Significantly increased from 11.9 to 21.9, demonstrating stronger earnings capacity to service debt.

Debt Ratios

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Coverage Ratios

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Cintas Corp., debt to equity calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)

Shareholders’ equity	4,293,106)	4,021,423)	4,316,372)	4,234,083)	3,994,481)	4,077,635)	3,863,986)	3,633,256)	3,430,538)	3,229,626)	3,308,196)	3,293,900)	3,563,127)	3,309,203)	3,687,847)	3,816,510)	3,597,960)	3,604,804)	3,235,202)	3,324,309)	3,104,970)	3,050,706)
Solvency Ratio
Debt to equity¹	0.62	0.66	0.57	0.58	0.67	0.61	0.64	0.75	0.85	0.93	0.85	0.87	0.69	0.79	0.69	0.67	0.71	0.70	0.79	0.82	0.88	0.94

¹ Q2 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 2,657,771 ÷ 4,293,106 = 0.62

The analysis of the company's total debt, shareholders’ equity, and debt to equity ratio over the reviewed periods reveals several noteworthy trends and fluctuations.

Total Debt: The total debt demonstrates a general pattern of moderate fluctuations across the periodic intervals. Starting from approximately $2.88 billion, debt levels have experienced both decreases and increases, with notable declines around early 2020 and mid-2023. Peaks in total debt are observed around early 2022 and late 2022, reaching near $3.0 billion levels, before gradually decreasing again in the latest periods to just above $2.6 billion. This indicates an active management of debt levels with some periods of borrowing increase followed by repayment or reduction.
Shareholders’ Equity: Shareholders’ equity shows an overall upward trend throughout the timeline. Initial values near $3.05 billion rise consistently with minor dips, reaching a high above $4.3 billion in recent periods. Despite some fluctuations, the growth in equity suggests strengthening financial foundations and accumulated retained earnings or capital contributions enhancing the equity base.
Debt to Equity Ratio: The debt to equity ratio follows a downward trend initially, moving from 0.94 toward lower values close to 0.58 by mid-2024. This decline generally reflects the simultaneous increase in equity and relative reduction or controlled increase of debt, improving the company’s leverage position. Some short-term spikes occur, such as around early 2022 where the ratio rises above 0.9, indicating temporary increased leverage. However, the ratio generally remains below 1.0 across all periods, indicating debt levels have not exceeded equity capital.

Overall, the financial structure shows a strengthening equity position coupled with controlled debt management. The declining debt to equity ratio over time indicates improved solvency and potentially lower financial risk. Periodic increases in debt suggest tactical borrowing possibly for operational or investment needs, but the company's capital base demonstrates robust growth, supporting a resilient financial framework over the analyzed quarters.

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Cintas Corp., debt to equity (including operating lease liability) calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)
Operating lease liabilities, current	46,921)	46,537)	45,727)	44,430)	44,063)	43,803)	43,710)	42,970)	42,792)	43,539)	43,872)	44,105)	43,156)	43,308)	43,850)	43,767)	42,682)	43,414)	43,031)	44,043)	44,263)	43,010)
Operating lease liabilities, long-term	141,973)	149,345)	146,824)	146,060)	138,936)	141,459)	138,278)	139,107)	136,520)	134,010)	129,064)	131,224)	118,892)	122,291)	130,774)	119,071)	117,494)	121,727)	122,695)	126,994)	130,580)	125,684)
Total debt (including operating lease liability)	2,846,665)	2,838,032)	2,668,080)	2,665,398)	2,867,286)	2,662,355)	2,668,393)	2,917,082)	3,099,995)	3,169,618)	2,968,442)	3,027,898)	2,621,922)	2,783,988)	2,716,527)	2,704,192)	2,700,980)	2,705,396)	2,705,431)	2,909,993)	2,913,237)	3,045,527)

Shareholders’ equity	4,293,106)	4,021,423)	4,316,372)	4,234,083)	3,994,481)	4,077,635)	3,863,986)	3,633,256)	3,430,538)	3,229,626)	3,308,196)	3,293,900)	3,563,127)	3,309,203)	3,687,847)	3,816,510)	3,597,960)	3,604,804)	3,235,202)	3,324,309)	3,104,970)	3,050,706)
Solvency Ratio
Debt to equity (including operating lease liability)¹	0.66	0.71	0.62	0.63	0.72	0.65	0.69	0.80	0.90	0.98	0.90	0.92	0.74	0.84	0.74	0.71	0.75	0.75	0.84	0.88	0.94	1.00

¹ Q2 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 2,846,665 ÷ 4,293,106 = 0.66

The financial data for the specified periods reveals several notable trends in the company’s capital structure and financial leverage. The total debt, inclusive of operating lease liabilities, demonstrates fluctuations over the five-year horizon, with values ranging from approximately $2.66 billion to $3.17 billion. After an initial decrease from August 2019 through May 2020, total debt stabilizes with some oscillations, peaking again in early 2022 before experiencing a declining trend between early 2023 and mid-2024, albeit with some intermittent increases.

Shareholders’ equity follows a generally upward trajectory during the same timeframe. Starting just above $3 billion in late 2019, equity increases steadily with occasional minor declines, reaching a peak of about $4.32 billion by mid-2024. This growth in equity suggests either retained earnings accumulation, stock issuance, or other equity-enhancing activities, indicating an improved buffer against liabilities over time.

The debt-to-equity ratio, which measures financial leverage by comparing total debt to shareholders’ equity, exhibits a decreasing trend from a ratio of 1.0 in August 2019 to near 0.62 by mid-2024, highlighting a reduced reliance on debt financing relative to equity. This ratio fluctuates within the overall downward trend, demonstrating occasional short-term increases, but the long-term movement implies strengthening equity position and relatively lower financial risk.

Total Debt: Displayed a downward trend from mid-2019 until mid-2020, followed by oscillations with a peak at the beginning of 2022 and then a generally decreasing trend towards mid-2024.
Shareholders’ Equity: Consistently increased over the observed periods, with growth from approximately $3.05 billion in 2019 to over $4.29 billion by mid-2024, indicating enhanced capital base and financial stability.
Debt to Equity Ratio: Fell from 1.0 in August 2019 to around 0.62 by mid-2024, signifying a reduction in the company’s leverage and suggesting a more conservative capital structure over time.

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Cintas Corp., debt to capital calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)
Shareholders’ equity	4,293,106)	4,021,423)	4,316,372)	4,234,083)	3,994,481)	4,077,635)	3,863,986)	3,633,256)	3,430,538)	3,229,626)	3,308,196)	3,293,900)	3,563,127)	3,309,203)	3,687,847)	3,816,510)	3,597,960)	3,604,804)	3,235,202)	3,324,309)	3,104,970)	3,050,706)
Total capital	6,950,877)	6,663,573)	6,791,901)	6,708,991)	6,678,768)	6,554,728)	6,350,391)	6,368,261)	6,351,221)	6,221,695)	6,103,702)	6,146,469)	6,023,001)	5,927,592)	6,229,750)	6,357,864)	6,138,764)	6,145,059)	5,774,907)	6,063,265)	5,843,364)	5,927,539)
Solvency Ratio
Debt to capital¹	0.38	0.40	0.36	0.37	0.40	0.38	0.39	0.43	0.46	0.48	0.46	0.46	0.41	0.44	0.41	0.40	0.41	0.41	0.44	0.45	0.47	0.49

¹ Q2 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,657,771 ÷ 6,950,877 = 0.38

The analysis of the financial data reveals several notable trends in the company's leverage and capital structure over the examined periods.

Total Debt: Total debt exhibited a fluctuating pattern throughout the timeline. Beginning at approximately 2.88 billion USD in late August 2019, it declined gradually into mid-2020, reaching a low around 2.54 billion USD. Subsequently, the debt level showed variability with periodic increases and decreases, peaking near 3.0 billion USD in late 2022 before decreasing again toward mid-2023. The final quarters evidenced fluctuations around 2.5 to 2.7 billion USD, indicating no consistent upward or downward trend but rather a cyclical adjustment in debt levels.
Total Capital: Total capital maintained a relatively stable to modestly increasing trajectory over the periods. Starting at roughly 5.93 billion USD in August 2019, the capital base showed minor oscillations, with temporary declines yet overall gradual growth. By November 2024, the capital had increased to approximately 6.95 billion USD, representing steady expansion in the financial base supporting the enterprise. This trend suggests prudent capital management with incremental accumulation or retention of capital over the analyzed timeframe.
Debt to Capital Ratio: The debt-to-capital ratio demonstrates an overall decline, signaling a reduction in leverage relative to the company's capital. Initially near 0.49 in August 2019, the ratio decreased progressively to reach around 0.36 by August 2024, despite some intermittent fluctuations. This general downward move indicates a trend toward lower reliance on debt financing, potentially reflecting either debt reduction, capital growth outpacing debt, or a combination of both. The company's leverage management appears focused on maintaining a balanced and possibly more conservative capital structure.

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Cintas Corp., debt to capital (including operating lease liability) calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)
Operating lease liabilities, current	46,921)	46,537)	45,727)	44,430)	44,063)	43,803)	43,710)	42,970)	42,792)	43,539)	43,872)	44,105)	43,156)	43,308)	43,850)	43,767)	42,682)	43,414)	43,031)	44,043)	44,263)	43,010)
Operating lease liabilities, long-term	141,973)	149,345)	146,824)	146,060)	138,936)	141,459)	138,278)	139,107)	136,520)	134,010)	129,064)	131,224)	118,892)	122,291)	130,774)	119,071)	117,494)	121,727)	122,695)	126,994)	130,580)	125,684)
Total debt (including operating lease liability)	2,846,665)	2,838,032)	2,668,080)	2,665,398)	2,867,286)	2,662,355)	2,668,393)	2,917,082)	3,099,995)	3,169,618)	2,968,442)	3,027,898)	2,621,922)	2,783,988)	2,716,527)	2,704,192)	2,700,980)	2,705,396)	2,705,431)	2,909,993)	2,913,237)	3,045,527)
Shareholders’ equity	4,293,106)	4,021,423)	4,316,372)	4,234,083)	3,994,481)	4,077,635)	3,863,986)	3,633,256)	3,430,538)	3,229,626)	3,308,196)	3,293,900)	3,563,127)	3,309,203)	3,687,847)	3,816,510)	3,597,960)	3,604,804)	3,235,202)	3,324,309)	3,104,970)	3,050,706)
Total capital (including operating lease liability)	7,139,771)	6,859,455)	6,984,452)	6,899,481)	6,861,767)	6,739,990)	6,532,379)	6,550,338)	6,530,533)	6,399,244)	6,276,638)	6,321,798)	6,185,049)	6,093,191)	6,404,374)	6,520,702)	6,298,940)	6,310,200)	5,940,633)	6,234,302)	6,018,207)	6,096,233)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.40	0.41	0.38	0.39	0.42	0.40	0.41	0.45	0.47	0.50	0.47	0.48	0.42	0.46	0.42	0.41	0.43	0.43	0.46	0.47	0.48	0.50

¹ Q2 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,846,665 ÷ 7,139,771 = 0.40

The analysis of the quarterly financial data reveals several notable trends in the debt and capital structure over the given periods.

Total Debt (Including Operating Lease Liability): The total debt exhibits fluctuations over time but remains within a range approximately between 2.6 billion and 3.2 billion US dollars. Initially, it decreased from around 3.05 billion at the end of August 2019 to about 2.7 billion by mid-2020, indicating a reduction in leverage, possibly reflecting deleveraging or operational adjustments. Debt levels later showed volatility, with peaks reaching close to 3.17 billion in August 2022 and troughs near 2.66 billion around mid-2023. Toward the latest periods, total debt exhibits a moderate upward trend, ending near 2.85 billion by November 2024.
Total Capital (Including Operating Lease Liability): Total capital displays overall growth with periodic fluctuations. It started at approximately 6.1 billion US dollars in August 2019 and generally increased to reach about 7.1 billion by November 2024. Despite some declines, such as dips around May 2020 and August 2021, the trend suggests an expansion in the capital base over the multi-year horizon, which may be attributable to retained earnings growth, equity issuance, or other capital increases.
Debt to Capital Ratio (Including Operating Lease Liability): The debt to capital ratio declines from 0.50 at the end of August 2019 to a minimum near 0.38 in August 2024, indicating a gradual reduction in leverage relative to the capital base. This decline is consistent with the observed pattern of increased total capital combined with a slightly lower or stable total debt level. Some volatility is noted, with ratios oscillating due to changes in both debt and capital, but the overall direction reflects improved capitalization or reduced relative indebtedness over the period analyzed.

In summary, the company tends to maintain a consistent total debt level with some fluctuations, while its total capital has generally expanded, contributing to a declining debt to capital ratio. This pattern suggests a strengthening of the balance sheet over the timeframe considered, with potentially enhanced financial stability and lower relative financial risk.

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Cintas Corp., debt to assets calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)

Total assets	9,366,529)	9,068,707)	9,168,817)	8,978,875)	8,813,869)	8,719,681)	8,546,356)	8,466,001)	8,427,007)	8,261,026)	8,147,256)	8,168,600)	8,017,410)	7,857,750)	8,236,823)	8,347,497)	8,454,753)	8,043,381)	7,669,885)	7,901,980)	7,887,337)	7,661,900)
Solvency Ratio
Debt to assets¹	0.28	0.29	0.27	0.28	0.30	0.28	0.29	0.32	0.35	0.36	0.34	0.35	0.31	0.33	0.31	0.30	0.30	0.32	0.33	0.35	0.35	0.38

¹ Q2 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,657,771 ÷ 9,366,529 = 0.28

Total Debt: The total debt demonstrates notable fluctuations across the observed periods. Initially, debt levels declined from approximately $2.88 billion to $2.54 billion between August 2019 and May 2020, indicating a concerted effort to reduce liabilities. Following this trough, the debt amount remained relatively stable with slight increases and decreases but showed a moderate upward movement towards early 2022, peaking near $3.0 billion in August 2022. After this peak, the total debt exhibited a declining trend through mid-2023 before rising again moderately towards the end of the period analyzed, reaching approximately $2.66 billion by November 2024.
Total Assets: Total assets presented a generally positive trajectory over time. Starting from roughly $7.66 billion in August 2019, the asset base grew steadily, with occasional minor dips, reaching about $8.47 billion in May 2023. This upward trend continued into 2024, culminating in approximately $9.37 billion by November 2024. The consistent increase suggests ongoing expansion or asset accumulation efforts throughout the timeframe.
Debt to Assets Ratio: The debt to assets ratio followed a downward trend initially, decreasing from 0.38 in August 2019 to a low around 0.29 by May 2023, implying improving leverage conditions and possibly enhanced financial stability. Despite some volatility, including temporary increases reaching around 0.36 in late 2022, the ratio stabilized and further declined toward the end of the period analyzed, ending near 0.28 in November 2024. This pattern indicates a relatively conservative approach to debt relative to assets, maintaining leverage at moderate levels.

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Cintas Corp., debt to assets (including operating lease liability) calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Debt due within one year	630,808)	615,702)	449,595)	—)	210,000)	—)	—)	249,053)	435,406)	507,467)	311,574)	1,509,056)	1,116,507)	1,275,167)	899,070)	249,936)	249,872)	249,808)	—)	199,800)	199,788)	338,776)
Debt due after one year	2,026,963)	2,026,448)	2,025,934)	2,474,908)	2,474,287)	2,477,093)	2,486,405)	2,485,952)	2,485,277)	2,484,602)	2,483,932)	1,343,513)	1,343,367)	1,343,222)	1,642,833)	2,291,418)	2,290,932)	2,290,447)	2,539,705)	2,539,156)	2,538,606)	2,538,057)
Total debt	2,657,771)	2,642,150)	2,475,529)	2,474,908)	2,684,287)	2,477,093)	2,486,405)	2,735,005)	2,920,683)	2,992,069)	2,795,506)	2,852,569)	2,459,874)	2,618,389)	2,541,903)	2,541,354)	2,540,804)	2,540,255)	2,539,705)	2,738,956)	2,738,394)	2,876,833)
Operating lease liabilities, current	46,921)	46,537)	45,727)	44,430)	44,063)	43,803)	43,710)	42,970)	42,792)	43,539)	43,872)	44,105)	43,156)	43,308)	43,850)	43,767)	42,682)	43,414)	43,031)	44,043)	44,263)	43,010)
Operating lease liabilities, long-term	141,973)	149,345)	146,824)	146,060)	138,936)	141,459)	138,278)	139,107)	136,520)	134,010)	129,064)	131,224)	118,892)	122,291)	130,774)	119,071)	117,494)	121,727)	122,695)	126,994)	130,580)	125,684)
Total debt (including operating lease liability)	2,846,665)	2,838,032)	2,668,080)	2,665,398)	2,867,286)	2,662,355)	2,668,393)	2,917,082)	3,099,995)	3,169,618)	2,968,442)	3,027,898)	2,621,922)	2,783,988)	2,716,527)	2,704,192)	2,700,980)	2,705,396)	2,705,431)	2,909,993)	2,913,237)	3,045,527)

Total assets	9,366,529)	9,068,707)	9,168,817)	8,978,875)	8,813,869)	8,719,681)	8,546,356)	8,466,001)	8,427,007)	8,261,026)	8,147,256)	8,168,600)	8,017,410)	7,857,750)	8,236,823)	8,347,497)	8,454,753)	8,043,381)	7,669,885)	7,901,980)	7,887,337)	7,661,900)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.30	0.31	0.29	0.30	0.33	0.31	0.31	0.34	0.37	0.38	0.36	0.37	0.33	0.35	0.33	0.32	0.32	0.34	0.35	0.37	0.37	0.40

¹ Q2 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,846,665 ÷ 9,366,529 = 0.30

The analysis of the quarterly financial metrics reveals several noteworthy trends with respect to the company's leverage and asset base over the observed periods.

Total Debt (including operating lease liability): The total debt figures fluctuate over the quarters but exhibit a general pattern of moderate variation rather than a consistent increase or decrease. Starting from approximately 3.05 billion USD, the total debt decreased through early 2020, reaching a low around 2.7 billion USD. It then showed some oscillations, with peaks near 3.17 billion USD in mid-2022 and subsequent declines into 2023, ending close to 2.85 billion USD by late 2024. This indicates a degree of active debt management, potentially influenced by operational financing needs and lease agreements.
Total Assets: Total assets demonstrate an overall upward trend throughout the period under review. Beginning near 7.66 billion USD, assets gradually increased with some minor fluctuations, surpassing 9.3 billion USD by the end of the timeline. The steady asset growth suggests ongoing investments and asset acquisitions, contributing to expanding the company’s operational capacity and resource base.
Debt to Assets Ratio (including operating lease liability): The debt-to-assets ratio shows a gradual decline from 0.40 at the start to around 0.30 towards the end of the period. This declining trend indicates an improvement in the company's financial leverage position, as the growth of assets outpaces changes in debt levels. Despite some fluctuations, the ratio remains below 0.40 consistently, reflecting a relatively moderate use of debt financing in relation to the asset base. This trend points to strengthened balance sheet stability over time.

In summary, while total debt has experienced some fluctuations without a clear directional trend, total assets have steadily increased, resulting in a declining debt-to-assets ratio. This pattern suggests improving capital structure and potentially reduced financial risk as asset growth provides a stronger backing for the company’s liabilities.

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Cintas Corp., financial leverage calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Total assets	9,366,529)	9,068,707)	9,168,817)	8,978,875)	8,813,869)	8,719,681)	8,546,356)	8,466,001)	8,427,007)	8,261,026)	8,147,256)	8,168,600)	8,017,410)	7,857,750)	8,236,823)	8,347,497)	8,454,753)	8,043,381)	7,669,885)	7,901,980)	7,887,337)	7,661,900)
Shareholders’ equity	4,293,106)	4,021,423)	4,316,372)	4,234,083)	3,994,481)	4,077,635)	3,863,986)	3,633,256)	3,430,538)	3,229,626)	3,308,196)	3,293,900)	3,563,127)	3,309,203)	3,687,847)	3,816,510)	3,597,960)	3,604,804)	3,235,202)	3,324,309)	3,104,970)	3,050,706)
Solvency Ratio
Financial leverage¹	2.18	2.26	2.12	2.12	2.21	2.14	2.21	2.33	2.46	2.56	2.46	2.48	2.25	2.37	2.23	2.19	2.35	2.23	2.37	2.38	2.54	2.51

¹ Q2 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 9,366,529 ÷ 4,293,106 = 2.18

The analysis of the quarterly financial data reveals several notable trends in the company’s asset base, equity position, and financial leverage over the examined periods.

Total Assets: Total assets exhibited a generally increasing trend from approximately 7.66 billion USD to over 9.36 billion USD across the full time span. The asset base showed some fluctuations, with slight declines or plateaus occurring in certain quarters, especially notable during early 2020 and mid-2022. However, the overall trajectory indicates steady growth with occasional minor contractions, suggesting ongoing investment and expansion while managing assets prudently.
Shareholders’ Equity: Shareholders’ equity advanced from around 3.05 billion USD to over 4.29 billion USD by the latest quarter. This progression was somewhat irregular, demonstrating periods of increases interrupted by occasional declines, particularly noticeable around late 2021 and late 2024. Nonetheless, the general pattern denotes strengthened equity capital over time, indicative of sustained profitability, retained earnings accumulation, or equity financing supporting the company’s financial structure.
Financial Leverage: The financial leverage ratio, defined as total assets divided by shareholders’ equity, mostly ranged between approximately 2.12 and 2.56. The ratio trended downward from 2.51 in mid-2019 to values near 2.12 in the mid-2020s, before experiencing some moderate oscillations. The reduction in leverage implies a relative decrease in reliance on debt financing or improvements in equity, enhancing the company's solvency profile. Some transient increases in leverage, such as those in late 2022 and early 2023, reflect temporary shifts in capital structure possibly linked to strategic financing decisions or market conditions.

Overall, the financial data portrays a company with a growing asset base and strengthening equity position, coupled with a moderate but controlled leverage level. The observed fluctuations in equity and leverage highlight responsive financial management adapting to operational and external factors. This pattern suggests a balanced approach to growth and risk management over the reporting periods.

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Cintas Corp., interest coverage calculation (quarterly data)

	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Selected Financial Data (US$ in thousands)
Net income	448,495)	452,033)	414,315)	397,579)	374,613)	385,085)	346,201)	325,827)	324,293)	351,689)	294,461)	315,448)	294,669)	331,179)	267,722)	258,384)	284,857)	300,005)	144,585)	234,520)	246,120)	250,812)
Less: Income (loss) from discontinued operations, net of tax	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(323)	—)
Add: Income tax expense	117,192)	84,629)	112,824)	98,621)	99,249)	91,349)	99,668)	92,539)	92,065)	60,866)	86,991)	70,183)	64,713)	41,124)	64,271)	43,619)	43,676)	25,215)	37,093)	54,536)	62,127)	28,175)
Add: Interest expense	26,665)	25,619)	24,076)	25,530)	26,590)	24,544)	25,773)	28,819)	28,920)	27,720)	23,058)	22,030)	21,902)	21,854)	24,551)	24,552)	24,557)	24,550)	25,952)	25,943)	26,177)	27,321)
Earnings before interest and tax (EBIT)	592,352)	562,281)	551,215)	521,730)	500,452)	500,978)	471,642)	447,185)	445,278)	440,275)	404,510)	407,661)	381,284)	394,157)	356,544)	326,555)	353,090)	349,770)	207,630)	314,999)	334,747)	306,308)
Solvency Ratio
Interest coverage¹	21.86	20.98	20.59	19.47	18.16	17.26	16.22	16.01	16.69	17.25	17.87	17.04	15.71	14.98	14.11	12.42	12.13	11.76	11.04	12.08	11.64	11.88

¹ Q2 2025 Calculation
Interest coverage = (EBIT_{Q2 2025} + EBIT_{Q1 2025} + EBIT_{Q4 2024} + EBIT_{Q3 2024}) ÷ (Interest expense_{Q2 2025} + Interest expense_{Q1 2025} + Interest expense_{Q4 2024} + Interest expense_{Q3 2024})
= (592,352 + 562,281 + 551,215 + 521,730) ÷ (26,665 + 25,619 + 24,076 + 25,530) = 21.86

EBIT Trend: The earnings before interest and tax (EBIT) exhibited fluctuations over the observed quarters. Initially, EBIT showed a decline from 306,308 thousand USD in August 2019 to a low of 207,630 thousand USD in May 2020. This period likely reflects operational challenges or external economic impacts. From mid-2020 onward, EBIT presented a consistent upward trend, reaching 592,352 thousand USD by November 2024, indicating a strong recovery and sustained growth in operational profitability.
Interest Expense Trend: Interest expense remained relatively stable through the majority of the periods, hovering between approximately 21,854 thousand USD and 28,920 thousand USD. Notably, there was a slight increase in interest expense around late 2022, peaking at 28,920 thousand USD in November 2022, followed by some fluctuations until the later periods where it showed a slight uptick again, reaching 26,665 thousand USD by November 2024. Overall, interest expense did not change drastically and remained a minor component relative to EBIT.
Interest Coverage Ratio Analysis: The interest coverage ratio demonstrated a clear improvement throughout the entire timeline. Starting at 11.88 in August 2019, it slightly decreased mid-2020 but then consistently increased, reaching 21.86 by November 2024. This indicates a strengthening ability to cover interest expenses with earnings before interest and tax, reflecting improved operational income relative to fixed financial costs and potentially reduced risk from interest obligations.
Overall Financial Insights: The data reflects a strong rebound and growth in operational earnings after mid-2020, with EBIT expanding significantly. Interest expenses remained relatively stable, suggesting controlled borrowing costs or stable debt levels. The steadily increasing interest coverage ratio points to improved financial health and operational efficiency, enhancing the company's capacity to meet interest obligations comfortably. The combination of rising EBIT and stable interest expenses contributes to this positive credit metric improvement.

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Cintas Corp. (NASDAQ:CTAS)

Analysis of Solvency Ratios
Quarterly Data

Solvency Ratios (Summary)

Debt Ratios

Coverage Ratios

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Cintas Corp. (NASDAQ:CTAS)

Analysis of Solvency Ratios Quarterly Data

Solvency Ratios (Summary)

Debt Ratios

Coverage Ratios

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Analysis of Solvency Ratios
Quarterly Data