Cintas Corporation (CTAS)

Fixed asset turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020
Revenue (ttm)	US$ in thousands	10,143,470	9,940,480	9,755,880	9,596,620	9,410,150	9,193,970	8,991,650	8,815,770	8,605,990	8,376,540	8,123,960	7,854,460	7,615,430	7,431,950	7,266,720	7,116,350	6,900,270	6,933,860	7,020,560	7,085,120
Property, plant and equipment	US$ in thousands	—	—	—	—	—	1,642,980	1,620,940	1,396,480	1,358,180	1,340,660	1,503,830	1,493,680	1,480,170	1,455,050	1,460,520	1,402,270	1,329,930	1,344,330	1,378,380	1,403,060
Fixed asset turnover		—	—	—	—	—	5.60	5.55	6.31	6.34	6.25	5.40	5.26	5.14	5.11	4.98	5.07	5.19	5.16	5.09	5.05

February 28, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,143,470K ÷ $—K
= —

The fixed asset turnover ratio for Cintas Corporation exhibits a pattern of gradual fluctuation over the analyzed period from May 2020 to November 2023. The ratio initially increased from 5.05 in May 2020 to a peak of 6.34 in February 2023, indicating an improvement in the efficiency with which the company utilizes its fixed assets to generate sales. This upward trend suggests effective management of fixed assets, possibly through better asset utilization or investment in more productive assets.

Between May 2020 and November 2022, there is a consistent upward trajectory, with the ratio rising from 5.05 to 6.25, reflecting a sustained enhancement in asset efficiency. The peak at 6.34 in February 2023 underscores the period of optimal asset utilization within this timeframe.

After reaching this peak, the ratio demonstrates signs of stabilization and slight decrease, recording a value of 5.55 in August 2023 and a marginal increase to 5.60 in November 2023. This slight decline from the prior peak might suggest a modest reduction in asset productivity or a strategic shift in asset utilization.

Overall, the trend indicates a significant improvement in fixed asset efficiency over the period, culminating in the early 2023 peak, followed by stabilization. No data is available beyond November 2023, precluding further analysis, but the observed pattern suggests that Cintas has been effectively leveraging its fixed assets to support sales growth, with a recent tendency toward maintaining asset utilization levels.