Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cintas Corporation's free cash flow margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue also increased over both periods, supporting the cash conversion performance.
- Revenue rose from the prior quarter and from a year ago, while operating cash flow increased at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter and unchanged from a year ago, contributing to the improvement in free cash flow.
- Compared to the immediately preceding quarter, free cash flow margin was higher, supported by a larger increase in operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow margin also improved, as operating cash flow grew more than revenue and capital expenditure remained stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$579.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$681.8M
Cash generated by operations before capital spending.
CapEx
$101.9M
Capital spending and related asset purchases.
FCF margin
23.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-08-31 | $2.3B | $336.9M | $106.7M | $230.2M | 9.8% |
| 2023-11-30 | $2.4B | $392.7M | $93.8M | $298.9M | 12.6% |
| 2024-02-29 | $2.4B | $657.1M | $107.0M | $550.1M | 22.9% |
| 2024-05-31 | $2.5B | $681.8M | $101.9M | $579.8M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased from both the prior quarter and the same quarter last year, outpacing revenue growth and directly boosting free cash flow margin.
This was the strongest observable driver of the improved free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter and from a year ago, while operating cash flow increased at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter and unchanged from a year ago, contributing to the improvement in free cash flow.
Compared to the immediately preceding quarter, free cash flow margin was higher, supported by a larger increase in operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow margin also improved, as operating cash flow grew more than revenue and capital expenditure remained stable.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable year-over-year but could affect future free cash flow if it increases.