Cintas Corporation (CTAS)

Fixed asset turnover

May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Revenue US$ in thousands 9,596,620 8,706,250 7,777,990 7,040,630 7,085,120
Property, plant and equipment US$ in thousands 1,534,170 1,396,480 1,323,670 1,318,440 1,403,060
Fixed asset turnover 6.26 6.23 5.88 5.34 5.05

May 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,596,620K ÷ $1,534,170K
= 6.26

The fixed asset turnover ratio for Cintas Corporation has shown a consistent improvement over the past five years, indicating the company's ability to generate sales revenue relative to its investment in fixed assets. This ratio has increased from 5.05 in 2020 to 6.26 in 2024.

The upward trend in the fixed asset turnover ratio suggests that Cintas has been effectively utilizing its fixed assets to generate sales, which may reflect efficient operational management and asset utilization. A higher fixed asset turnover ratio typically indicates that the company is generating more revenue per dollar invested in fixed assets.

Overall, the improvement in the fixed asset turnover ratio for Cintas Corporation demonstrates increasing efficiency in generating sales from its fixed assets, potentially leading to enhanced profitability and return on investment for the company.


Peer comparison

May 31, 2024