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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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	0.95	0.87	0.90	0.76
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	0.95	0.87	0.90	0.76
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	0.49	0.46	0.47	0.43
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	0.49	0.46	0.47	0.43
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	0.38	0.37	0.37	0.35
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	0.38	0.37	0.37	0.35
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	2.48	2.34	2.45	2.18
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	11.84	—	—	—

Debt to Equity Ratios: The debt to equity ratio fluctuated between 0.57 and 0.95 over the period. Starting at 0.76 in August 2018, the ratio rose to a peak of 0.95 in May 2019, then generally declined with minor fluctuations, reaching the lowest point of 0.57 by August 2024. When including operating lease liabilities, the ratio presented a similar pattern but at slightly higher values, peaking at 1.00 in August 2019 and decreasing to 0.66 by August 2024. This indicates a gradual reduction in reliance on debt relative to shareholders' equity, including lease obligations.
Debt to Capital Ratios: Debt to capital ratios followed a similar trend to debt to equity. Initially at 0.43 in August 2018, it increased to around 0.49-0.50 in mid-2019, then declined steadily to reach approximately 0.36-0.40 by August 2024. Including operating lease liabilities, values were slightly higher but showed the same downward trend from 0.43 to about 0.38-0.41. This suggests a decrease in total debt as a portion of capital employed over time.
Debt to Assets Ratios: Both the standard and operating lease-inclusive debt to assets ratios demonstrated moderate fluctuations. Starting near 0.35 in August 2018, they crept above 0.38 in late 2019 but then declined gradually to levels between 0.27 and 0.31 by the latest dates in 2024. The inclusion of operating leases consistently yielded values about 0.02 to 0.03 higher than the standard ratio. This pattern reflects a mild reduction in the company's overall debt burden relative to total assets.
Financial Leverage: The financial leverage ratio showed volatility within a relatively narrow range, starting from 2.18 in August 2018, rising to a peak of 2.56 in August 2022, then trending downwards to approximately 2.12 by mid-2024. This metric suggests that the company's use of debt to finance assets has remained fairly stable, with a modest decrease in leverage towards the end of the period.
Interest Coverage Ratio: The interest coverage ratio began being reported in early 2019, starting at approximately 11.84, and demonstrated a steady and significant improvement over time. By August 2024, this ratio exceeded 21. Employees paid greater attention to this positive trend, indicating that earnings before interest and taxes have increasingly covered interest expenses comfortably. This reflects improved profitability or reduced interest expense levels, enhancing the company's ability to meet its debt obligations.
Overall Insights: Throughout the analyzed period, the company exhibited a clear trend of decreasing reliance on debt relative to equity, capital, and assets. The consistent downward trajectory of debt ratios, particularly from late 2019 onwards, coupled with improved interest coverage, signifies strengthening financial health and reduced risk exposure. The financial leverage remained stable but showed slight moderation, reinforcing the conservative approach to debt. The inclusion of operating lease liabilities raises all debt-related metrics moderately but does not alter the evident trend toward deleveraging.

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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)

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)	3,002,721)	3,179,492)	3,027,244)	3,345,968)
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	0.95	0.87	0.90	0.76

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

The financial data reveals several notable trends over the observed periods. Total debt demonstrates fluctuations within a range, generally maintaining levels between approximately 2.5 billion and 3.0 billion US dollars. A slight upward trend is observable toward the middle of the timeline, peaking near 3.0 billion, followed by a gradual decline and stabilization in more recent quarters.

Shareholders’ equity exhibits an overall upward trajectory, with values rising from about 3.3 billion US dollars at the beginning to over 4.3 billion by the end of the reporting periods. Despite some volatility and interim decreases, the equity base strengthens across the timeline, indicating accumulation of retained earnings or equity issuance that outpaces losses or distributions.

The debt to equity ratio mirrors the movements of the total debt and equity figures but shows a general declining trend over the analyzed duration. Initially close to 0.9, the ratio decreases steadily, reaching and remaining near 0.6 by the end of the period. This decline suggests improved financial leverage, reflecting either a reduction in debt relative to equity or growth in equity relative to debt. The reduced ratio implies a potentially lower financial risk profile and a stronger capital structure.

Total debt: Stable with minor fluctuations, peaking around early to mid-2022, followed by a slight decline toward late 2024.
Shareholders’ equity: Overall increasing trend, rising significantly from approximately 3.3 billion to over 4.3 billion US dollars, indicating strengthened equity position.
Debt to equity ratio: Declining pattern from nearly 0.9 to about 0.6, signaling improved leverage and financial stability.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)

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)	3,002,721)	3,179,492)	3,027,244)	3,345,968)
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	0.95	0.87	0.90	0.76

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 reveals several notable trends in the company's capital structure and leverage over the analyzed periods.

Total Debt (including operating lease liability): The total debt level exhibited fluctuations throughout the observed timeframe. Initially, debt increased from approximately 2.54 billion USD in August 2018 to a peak near 3.05 billion USD by August 2019. Following this, debt generally declined, reaching around 2.66 billion USD in both August 2023 and November 2023, though there was a slight uptick again in early 2024, reaching roughly 2.85 billion USD by November 2024. Overall, the data suggests a pattern of rising debt until mid-2019, followed by periods of gradual deleveraging and modest rebounds.
Shareholders’ Equity: Shareholders' equity demonstrated a cyclical pattern with an overall increasing trend in the latter portion of the timeline. Starting at about 3.35 billion USD in August 2018, equity declined to roughly 3.00 billion USD by May 2019, then recovered to approximately 3.60 billion USD by August 2020. It continued rising to surpass 4.0 billion USD in the period from August 2023 to February 2024 before a slight decline in mid-2024. These fluctuations reflect changes in retained earnings, net income, and possibly share issuance or buybacks, with equity levels growing stronger in recent periods.
Debt to Equity Ratio (including operating lease liability): The debt-to-equity ratio varied significantly over the quarters, indicating changes in the balance between liabilities and equity financing. Initially, the ratio increased from 0.76 in August 2018 to a high of 1.00 in August 2019, reflecting a peak in leverage. After this point, the ratio trended downward, showing reduced leverage to a low near 0.62 in November 2024. Periods of declining debt levels combined with rising equity contributed to this reduction in leverage, signaling an improved equity cushion relative to debt. However, intermittent increases in the ratio indicate occasional increases in debt or decreases in equity.

In summary, the data indicate a peak in indebtedness and leverage around mid-2019, followed by efforts to deleverage and strengthen equity. The recent lower debt-to-equity ratios suggest an improved financial position with reduced relative risk from debt exposure, enhancing the company's balance sheet stability 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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)
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)	3,002,721)	3,179,492)	3,027,244)	3,345,968)
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)	5,852,492)	5,933,950)	5,737,152)	5,881,827)
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	0.49	0.46	0.47	0.43

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

The financial data reveals fluctuating levels of total debt and total capital over the reporting periods. Total debt shows a general pattern of increases and decreases, with peaks and troughs that seem to correspond to varying capital levels. Total capital itself demonstrates oscillations, generally increasing over the longer term but with periods of both accumulation and reduction.

The debt-to-capital ratio, a measure of financial leverage, exhibits variability throughout the timeline. Initially, it rises from 0.43 in August 2018 to approximately 0.49 by May 2019 and August 2019, indicating an increasing reliance on debt financing relative to total capital. Subsequently, a declining trend is observable, reaching values near 0.36 by November 2024, suggesting a gradual reduction in leverage. Intermittent fluctuations occur, but the overarching trend points toward a moderated debt position relative to capital.

Specific patterns show that while total debt decreased notably in the period from around November 2020 onward, total capital generally trended upward, contributing to the diminishing debt-to-capital ratio. The decline in leverage during this phase may reflect strategic deleveraging or repayment efforts. Although some periods show temporary upticks in debt or leverage, these are relatively minor compared to the overall downward trend in debt-to-capital ratio.

In summary, the data reflects a company managing its capital structure with periodic adjustments, ultimately trending toward lower financial leverage over the observed periods. Total capital growth alongside moderated debt levels indicates an improving financial position with reduced relative debt burden.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)
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)	3,002,721)	3,179,492)	3,027,244)	3,345,968)
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)	5,852,492)	5,933,950)	5,737,152)	5,881,827)
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	0.49	0.46	0.47	0.43

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

Total debt (including operating lease liability): The total debt showed an overall increasing trend from August 2018 through early 2022, rising from approximately 2.54 billion USD to a peak near 3.17 billion USD in August 2022. This upward movement was relatively steady with minor fluctuations. However, from late 2022 onward, a declining pattern emerged, with debt decreasing to around 2.66 billion USD by November 2023, followed by a slight upswing reaching about 2.85 billion USD in August 2024. The fluctuations indicate a period of debt accumulation followed by efforts to reduce leverage, though the increase near the end of the observed period suggests renewed borrowing or lease obligations.
Total capital (including operating lease liability): Total capital exhibited moderate growth over the examined timeframe, starting at roughly 5.88 billion USD in August 2018 and increasing to a high near 7.14 billion USD by November 2024. While some periods show small declines or plateaus, the general direction is upward. Notably, total capital showed some volatility around 2021 and 2022 but resumed its growth subsequently. This steady increase indicates expanding resources or investment base, supporting potential growth or operational needs.
Debt to capital (including operating lease liability): The debt-to-capital ratio fluctuated mostly within the 0.38 to 0.50 range, reflecting changes in the leverage position over time. Initially, the ratio increased from 0.43 in August 2018 to a peak of 0.50 by August 2019, indicating that debt formed a larger proportion of capital during this period. It then declined to lows around 0.38-0.39 in early to mid-2024, suggesting improved capital structure with reduced leverage. The ratio's decrease in recent quarters corresponds with the observed reduction in total debt and the rise in total capital, implying a shift towards a stronger equity or capital base relative to debt.
Summary of trends and insights: Across the dataset, total debt increased significantly up to mid-2022, followed by a reduction phase, while total capital generally grew steadily throughout the period. The leverage ratio mirrored these patterns, rising initially and subsequently declining, indicating a strategic move towards debt reduction and capital strengthening in recent quarters. The observed shifts in debt and capital suggest active management of the balance sheet to optimize financial structure, possibly in response to market conditions or operational requirements. The fluctuations in debt, especially the late increase in 2024, may reflect tactical borrowing or lease obligations adjustments, whereas the consistent capital growth points to ongoing investment or retained earnings accumulation.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)

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)	7,436,662)	7,433,673)	7,405,083)	7,287,204)
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	0.38	0.37	0.37	0.35

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

Total debt: Over the observed periods, total debt exhibited fluctuations with a general range between approximately $2.4 billion and $2.9 billion. There were increments noted from August 2018 through early 2019, followed by a moderate decline around mid-2020. Subsequently, debt levels rose again, reaching peaks in mid-2022 near $3.0 billion, before subsiding towards late 2023 and early 2024. This pattern indicates periodic adjustments in leverage, reflecting potential strategic financing activities or refinancing events aligned with business needs and market conditions.
Total assets: Total assets showed an overall increasing trend from roughly $7.3 billion in August 2018 to just over $9.3 billion by mid-2024. There were steady increments punctuated by minor fluctuations, notably a slight dip around early 2021 and another stabilization phase in late 2023. The asset accumulation suggests sustained growth or reinvestment in operational and possibly non-operational assets, underlining expansion or enhancement of asset base over the period.
Debt to assets ratio: The debt-to-assets ratio demonstrated a downward trajectory over the entire period, starting at 0.35 in August 2018, peaking briefly at 0.38, then gradually declining to approximately 0.28 by late 2024. This indicates an improvement in financial leverage position, with assets increasing relative to debt. The ratio's decline suggests a strengthening balance sheet and potentially reduced financial risk, reflecting management focus on maintaining lower leverage or asset growth outpacing debt accumulation.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	312,264)	217,500)	173,500)	—)
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)	2,537,507)	2,536,958)	2,536,408)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)
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)	2,849,771)	2,754,458)	2,709,908)	2,535,859)

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)	7,436,662)	7,433,673)	7,405,083)	7,287,204)
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	0.38	0.37	0.37	0.35

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 financial data reveals several notable trends over the observed periods related to debt, assets, and leverage ratios.

Total Debt (including operating lease liability): The total debt generally fluctuates over time with some periods of increase followed by decreases. Starting at approximately 2.54 billion USD in August 2018, debt rose, reaching a peak around 3.17 billion USD in August 2022. Subsequently, there is a downward movement toward the end of the dataset, ending near 2.85 billion USD by November 2024. The data indicates periods of debt management and potential refinancing or repayments, especially noticeable after peaks.
Total Assets: Total assets exhibit an overall upward trend from about 7.29 billion USD in August 2018 to around 9.37 billion USD in November 2024. Despite minor short-term declines in some quarters, the steady increase underscores growth in the asset base. This growth may result from investments, acquisitions, or organic expansion. The periods where assets grow notably correspond to some fluctuations in debt, potentially reflecting strategic asset financing decisions.
Debt to Assets Ratio (including operating lease liability): The debt-to-assets ratio varies within a moderate range, approximately between 0.29 and 0.40. Initially, the ratio climbs from 0.35 in August 2018 up to a peak of 0.40 around August 2019, indicating a comparatively higher leverage at that time. Subsequently, the ratio mostly trends downward with intermittent fluctuations, settling near 0.30 by November 2024. This decline suggests a gradual reduction in leverage relative to assets, aligning with the simultaneous growth in asset values and relative stabilization or decline in debt levels.

In summary, the observed data illustrates a company that has increased its asset base steadily over the years while managing its debt levels with fluctuations that resulted in moderate leverage. The overall trend toward a lower debt-to-assets ratio in the later periods indicates an improvement in financial stability and possibly a more conservative capital structure in recent years.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	7,436,662)	7,433,673)	7,405,083)	7,287,204)
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)	3,002,721)	3,179,492)	3,027,244)	3,345,968)
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	2.48	2.34	2.45	2.18

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

The analysis of the data reveals several trends in the financial position over the periods presented. Total assets show a generally increasing trend, starting from approximately 7.29 billion and reaching a peak near 9.37 billion by November 2024, though there are fluctuations including a dip around mid-2020. This growth signifies an overall expansion in asset base over the years.

Shareholders’ equity demonstrates a less consistent pattern with some volatility. It starts at approximately 3.35 billion and experiences a decrease around late 2018 to mid-2019, recovers and peaks near 4.08 billion by August 2023, but declines again toward the end of the period, finishing around 4.29 billion by November 2024. This suggests variations in retained earnings or other equity components, possibly impacted by periodic profits, losses, or other equity transactions.

The financial leverage ratio fluctuates within a range of about 2.12 to 2.56. It rises during the initial quarters to above 2.5, correlating with equity declines or slower equity growth against asset growth, then generally declines toward roughly 2.12 by late 2023 and 2024, indicating a reduction in the ratio of total assets to equity. This decreasing leverage near the end of the period could imply a strengthening equity position relative to assets or a strategic shift in capital structure towards lower reliance on debt or other liabilities.

Total assets: Demonstrated steady growth with periodic dips, overall increasing by about 28.5% from August 2018 to November 2024.
Shareholders’ equity: Experienced fluctuations including declines in some periods, but overall increased by approximately 28% from the start to the end of the timeline, with notable volatility.
Financial leverage ratio: Varied between approximately 2.12 and 2.56, suggesting changing proportions of debt to equity; recent values indicate a trend toward moderate leverage.

In summary, the data indicates growth in asset base outpacing equity growth at times, reflected in higher leverage ratios in certain periods, followed by stabilization of leverage as equity levels improved. This signals active management of capital structure alongside expansion of the asset base throughout the observed quarters.

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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	May 31, 2019	Feb 28, 2019	Nov 30, 2018	Aug 31, 2018
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)	226,119)	203,334)	243,013)	212,515)
Less: Income (loss) from discontinued operations, net of tax	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(323)	—)	(52)	2,411)	19)	(32)
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)	62,729)	50,632)	77,530)	28,873)
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)	25,782)	26,770)	24,880)	24,304)
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)	314,682)	278,325)	345,404)	265,724)
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	11.84	—	—	—

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

Earnings before interest and tax (EBIT): The EBIT values demonstrate a general upward trend over the reported periods, with fluctuations reflecting varying operational performance. Starting at approximately 265,724 thousand USD in August 2018, EBIT rose to over 314,999 thousand USD by February 2020, although a significant decline is noticeable in May 2020, coinciding with a drop to 207,630 thousand USD. This dip is followed by a steady recovery and progressively increasing EBIT through subsequent quarters, reaching a peak of 592,352 thousand USD by November 2024. This trajectory suggests resilience and growth despite the mid-term volatility.
Interest Expense: Interest expense figures present relative stability with minor fluctuations throughout the quarters. Beginning at around 24,304 thousand USD in August 2018, interest expenses remained generally consistent, with slight increases and decreases that do not present a clear trend. A mild spike is noted in the quarters around August and November 2022, peaking near 28,920 thousand USD, before again decreasing to approximately 26,665 thousand USD by November 2024. Overall, interest costs exhibit controlled variability and do not mirror the more pronounced ebbs and flows of EBIT.
Interest Coverage Ratio: The interest coverage ratio, available from February 2019 onwards, indicates the company’s ability to service its interest obligations through operating earnings. Early in the observed timeline, the ratio begins near 11.84 and shows a gradual improvement over time. There is an upward trend with the ratio reaching above 21 by November 2024, suggesting enhanced capacity to cover interest expenses through earnings. Despite the EBIT dip in May 2020, the interest coverage maintains a relatively stable course, underscoring effective interest cost management relative to earnings growth.
Overall Financial Performance Insights: The financial data reveal an overall strengthening in operating earnings accompanied by stable interest expenses. The temporary downturn in EBIT around mid-2020 may indicate an external disruption impact, yet subsequent rapid increases in EBIT highlight recovery and expansion. The improving interest coverage ratio throughout the timeframe further supports the conclusion of an improving financial health and a robust earnings buffer to meet debt-related costs. The patterns suggest effective operational management combined with a prudent approach to managing interest-bearing liabilities.

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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