Cintas Corporation designs, manufactures, and implements corporate Identity uniform programs that it rents or sells to customers throughout the United States and Canada. The company's stock is traded on the NASDAQ and has provided Investors with significant ROES over the past few years. Selected Information from the company's financial statements follows. CINTAS CORPORATION (in millions) Select Statement of Earnings Information Net revenue Cost of sales Selling, general, and administrative expenses Interest expense, net Income tax expense Net earnings Select Statement of Cash Flows Information Cash paid for interest Cash flows from operating activities Select Statement of Financial Position Information Cash and cash equivalents Accounts receivable, net Inventories, net Uniforms and other rental items in service Income taxes receivable, current Prepaid expenses and other current assets Accounts payable Accrued compensation and related liabilities Accrued liabilities Operating lease liabilities, current Debt due within one year Current Year Prior Year $ 7,854.5 4,222.2 2,044.9 88.6 263.0 1,235.8 81.4 1,537.6 90.5 1,006.2 472.2 916.7 21.7 124.7 251.5 237.0 588.9 43.9 311.6 $ 493.6 901.7 481.8 810.1 22.3 133.8 230.8 241.5 518.9 43.9 899.1 Required: Compute the following ratios for the current year: receivables turnover ratio (assuming that all sales were on credit), Inventory turnover ratio, current ratio, quick ratio, and times Interest earned ratio. Comment on the liquidity position of the company. The reported Interest expense is net of $0.2 million in Interest Income. (Do not round Intermediate calculations. Round the final answers to 2 decimal places.)
Cintas Corporation designs, manufactures, and implements corporate Identity uniform programs that it rents or sells to customers throughout the United States and Canada. The company's stock is traded on the NASDAQ and has provided Investors with significant ROES over the past few years. Selected Information from the company's financial statements follows. CINTAS CORPORATION (in millions) Select Statement of Earnings Information Net revenue Cost of sales Selling, general, and administrative expenses Interest expense, net Income tax expense Net earnings Select Statement of Cash Flows Information Cash paid for interest Cash flows from operating activities Select Statement of Financial Position Information Cash and cash equivalents Accounts receivable, net Inventories, net Uniforms and other rental items in service Income taxes receivable, current Prepaid expenses and other current assets Accounts payable Accrued compensation and related liabilities Accrued liabilities Operating lease liabilities, current Debt due within one year Current Year Prior Year $ 7,854.5 4,222.2 2,044.9 88.6 263.0 1,235.8 81.4 1,537.6 90.5 1,006.2 472.2 916.7 21.7 124.7 251.5 237.0 588.9 43.9 311.6 $ 493.6 901.7 481.8 810.1 22.3 133.8 230.8 241.5 518.9 43.9 899.1 Required: Compute the following ratios for the current year: receivables turnover ratio (assuming that all sales were on credit), Inventory turnover ratio, current ratio, quick ratio, and times Interest earned ratio. Comment on the liquidity position of the company. The reported Interest expense is net of $0.2 million in Interest Income. (Do not round Intermediate calculations. Round the final answers to 2 decimal places.)
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1OYO
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Transcribed Image Text:Cintas Corporation designs, manufactures, and implements corporate Identity uniform programs that it rents or sells to customers
throughout the United States and Canada. The company's stock is traded on the NASDAQ and has provided Investors with significant
ROES over the past few years. Selected Information from the company's financial statements follows.
Select Statement of Earnings Information
Net revenue
Cost of sales
Selling, general, and administrative expenses
Interest expense, net
Income tax expense
Net earnings
Select Statement of Cash Flows Information
Cash paid for interest
Cash flows from operating activities
Select Statement of Financial Position Information
Cash and cash equivalents
Accounts receivable, net
Inventories, net
CINTAS CORPORATION
(in millions)
Uniforms and other rental items in service
Income taxes receivable, current
Prepaid expenses and other current assets
Accounts payable
Accrued compensation and related liabilities
Accrued liabilities
Operating lease liabilities, current
Debt due within one year
Receivables turnover ratio
Inventoryturnover
Current ratio
Quick ratio
times
times
Current Year Prior Year
$ 7,854.5
4,222.2
2,844.9
88.6
263.0
1,235.8
81.4
1,537.6
90.5
1,006.2
472.2
916.7
21.7
124.7
251.5
237.0
588.9
43.9
311.6
$
Required:
Compute the following ratios for the current year: receivables turnover ratio (assuming that all sales were on credit), Inventory turnover
ratio, current ratio, quick ratio, and times interest earned ratio. Comment on the liquidity position of the company. The reported Interest
expense is net of $0.2 million in Interest Income. (Do not round Intermediate calculations. Round the final answers to 2 decimal
places.)
493.6
981.7
481.8
810.1
22.3
133.8
230.8
241.5
518.9
43.9
899.1
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