Asset Breakdown
4.8 B
Assets Non Current
3 B
Goodwill
2.3 B
Current Assets
| Total Assets | 7.12 Billion | |
| Current Assets | 2.27 Billion | |
| Assets Non Current | 4.85 Billion | |
| Goodwill | 2.99 Billion | |
| Tax Assets | 6.9 Million |
Should I exit my Cintas (NASDAQ:CTAS) position?
 | By Ellen Johnson | Macroaxis Story |
Cintas is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 22nd of December 2020. Cintas Cash Flow Per Share is relatively stable at the moment as compared to the past year. Cintas reported last year Cash Flow Per Share of 12.49. As of 12/21/2020, Revenue to Assets is likely to grow to 1.04, while Revenue Per Employee is likely to drop slightly above 152.2 K. As many passive investors are finally getting excited about industrials space, Cintas could be a good starting point. We will analyze why Cintas investors may still consider a stake in the business.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
The company currently holds 2.86 B in liabilities with Debt to Equity (D/E) ratio of 0.79, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cintas has an asset utilization ratio of 171.04 percent. This connotes that the company is making $1.71 for each dollar of assets. An increasing asset utilization means that Cintas is more efficient with each dollar of assets it utilizes for everyday operations. Cintas financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cintas, including all of Cintas's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cintas assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cintas debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Cintas Total Liabilities
Cintas liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cintas has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cintas balance sheet include debt obligations and money owed to different Cintas vendors, workers, and loan providers. Below is the chart of Cintas short long-term liabilities accounts currently reported on its balance sheet. You can use Cintas financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Cintas's Liquidity
Cintas financial leverage refers to using borrowed capital as a funding source to finance Cintas ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cintas financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cintas' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cintas' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cintas's total debt and its cash.
Breaking down Cintas Indicators
The modest gains experienced by current holders of Cintas could raise concerns from retail investors as the firm it trading at a share price of 346.13 on 523,009 in volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.81. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Cintas. Please refer to our Terms of Use for any information regarding our disclosure principles.