Cintas Corporation (CTAS)
Total 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 |
| Total assets | US$ in thousands | 9,168,820 | 8,546,360 | 8,147,260 | 8,236,820 | 7,669,880 |
| Total asset turnover | 1.05 | 1.02 | 0.95 | 0.85 | 0.92 |
May 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,596,620K ÷ $9,168,820K
= 1.05
Total asset turnover measures how efficiently a company generates sales revenue from its total assets. It indicates the ability of a company to utilize its assets to generate revenue. A higher total asset turnover ratio signifies better asset utilization efficiency.
From the data provided, we observe an increasing trend in Cintas Corporation's total asset turnover ratio over the past five years. The ratio has improved from 0.92 in 2020 to 1.05 in 2024. This indicates that Cintas has become more efficient in generating sales revenue from its total assets over the years.
The increasing trend suggests that Cintas has been able to effectively manage and utilize its assets to drive revenue growth. This improvement can be attributed to better operational efficiency, effective asset management practices, or increased productivity.
Overall, the rising trend in Cintas Corporation's total asset turnover ratio reflects a positive sign of improved asset utilization efficiency, indicating that the company has been successful in generating more revenue per dollar of assets invested.
Peer comparison
May 31, 2024