Stock Analysis on Net
Stock Analysis on Net

Cintas Corp. (NASDAQ:CTAS) 

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)

Cintas Corp., short-term (operating) activity ratios

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Turnover Ratios
Inventory turnover 11.97 9.16 8.94 7.89 9.42 11.25
Receivables turnover 7.71 7.65 7.81 7.89 8.14 7.57
Payables turnover 14.48 15.36 16.79 16.47 16.67 16.65
Working capital turnover 7.07 5.16 6.55 7.83 4.97 6.22
Average No. Days
Average inventory processing period 30 40 41 46 39 32
Add: Average receivable collection period 47 48 47 46 45 48
Operating cycle 77 88 88 92 84 80
Less: Average payables payment period 25 24 22 22 22 22
Cash conversion cycle 52 64 66 70 62 58

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Cintas Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Cintas Corp. receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Cintas Corp. payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Cintas Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Cintas Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Cintas Corp. number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Cintas Corp. cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024.

Inventory Turnover

Cintas Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in thousands)
Cost of revenue 4,910,199 4,642,401 4,222,213 3,801,689 3,851,372 3,763,715
Inventories, net 410,201 506,604 472,150 481,797 408,898 334,589
Short-term Activity Ratio
Inventory turnover1 11.97 9.16 8.94 7.89 9.42 11.25
Benchmarks
Inventory Turnover, Industry
Industrials — 3.91 4.01 3.88 3.63 3.96

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).

1 2024 Calculation
Inventory turnover = Cost of revenue ÷ Inventories, net
= 4,910,199 ÷ 410,201 = 11.97

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Cintas Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

Cintas Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in thousands)
Revenue 9,596,615 8,815,769 7,854,459 7,116,340 7,085,120 6,892,303
Accounts receivable, principally trade, less allowance 1,244,182 1,152,993 1,006,220 901,710 870,369 910,120
Short-term Activity Ratio
Receivables turnover1 7.71 7.65 7.81 7.89 8.14 7.57
Benchmarks
Receivables Turnover, Industry
Industrials — 8.13 7.80 7.61 7.50 7.67

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).

1 2024 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, principally trade, less allowance
= 9,596,615 ÷ 1,244,182 = 7.71

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Cintas Corp. receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Payables Turnover

Cintas Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in thousands)
Cost of revenue 4,910,199 4,642,401 4,222,213 3,801,689 3,851,372 3,763,715
Accounts payable 339,166 302,292 251,504 230,786 230,995 226,020
Short-term Activity Ratio
Payables turnover1 14.48 15.36 16.79 16.47 16.67 16.65
Benchmarks
Payables Turnover, Industry
Industrials — 7.78 7.61 7.77 7.47 7.43

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).

1 2024 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 4,910,199 ÷ 339,166 = 14.48

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Cintas Corp. payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024.

Working Capital Turnover

Cintas Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in thousands)
Current assets 3,185,207 2,938,459 2,631,983 2,843,309 2,309,699 2,236,280
Less: Current liabilities 1,828,519 1,230,062 1,432,890 1,934,085 885,195 1,127,733
Working capital 1,356,688 1,708,397 1,199,093 909,224 1,424,504 1,108,547
 
Revenue 9,596,615 8,815,769 7,854,459 7,116,340 7,085,120 6,892,303
Short-term Activity Ratio
Working capital turnover1 7.07 5.16 6.55 7.83 4.97 6.22
Benchmarks
Working Capital Turnover, Industry
Industrials — 11.26 9.61 6.91 4.47 9.93

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).

1 2024 Calculation
Working capital turnover = Revenue ÷ Working capital
= 9,596,615 ÷ 1,356,688 = 7.07

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Cintas Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Average Inventory Processing Period

Cintas Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data
Inventory turnover 11.97 9.16 8.94 7.89 9.42 11.25
Short-term Activity Ratio (no. days)
Average inventory processing period1 30 40 41 46 39 32
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Industrials — 93 91 94 100 92

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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.97 = 30

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Cintas Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

Cintas Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data
Receivables turnover 7.71 7.65 7.81 7.89 8.14 7.57
Short-term Activity Ratio (no. days)
Average receivable collection period1 47 48 47 46 45 48
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Industrials — 45 47 48 49 48

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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.71 = 47

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Cintas Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data
Average inventory processing period 30 40 41 46 39 32
Average receivable collection period 47 48 47 46 45 48
Short-term Activity Ratio
Operating cycle1 77 88 88 92 84 80
Benchmarks
Operating Cycle, Industry
Industrials — 138 138 142 149 140

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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 30 + 47 = 77

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Cintas Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data
Payables turnover 14.48 15.36 16.79 16.47 16.67 16.65
Short-term Activity Ratio (no. days)
Average payables payment period1 25 24 22 22 22 22
Benchmarks (no. days)
Average Payables Payment Period, Industry
Industrials — 47 48 47 49 49

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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.48 = 25

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Cintas Corp. number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024.

Cash Conversion Cycle

Cintas Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data
Average inventory processing period 30 40 41 46 39 32
Average receivable collection period 47 48 47 46 45 48
Average payables payment period 25 24 22 22 22 22
Short-term Activity Ratio
Cash conversion cycle1 52 64 66 70 62 58
Benchmarks
Cash Conversion Cycle, Industry
Industrials — 91 90 95 100 91

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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 30 + 47 – 25 = 52

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Cintas Corp. cash conversion cycle improved from 2022 to 2023 and from 2023 to 2024.