Cintas Corporation (CTAS)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.83% | 47.94% | 46.70% | 47.08% | 45.64% |
| Operating profit margin | 21.56% | 20.71% | 20.41% | 19.68% | 16.41% |
| Pretax margin | 20.57% | 19.45% | 19.27% | 18.29% | 14.93% |
| Net profit margin | 16.38% | 15.48% | 15.89% | 15.78% | 12.36% |
Cintas Corporation has shown consistent improvement in its profitability ratios over the past five years. The company's gross profit margin has exhibited an upward trend, reaching 48.83% in 2024 from 45.64% in 2020. This indicates that Cintas has been able to effectively manage its cost of goods sold and generate higher gross profits relative to its revenue.
The operating profit margin has also shown steady improvement, increasing from 16.41% in 2020 to 21.56% in 2024. This implies that Cintas has been successful in controlling its operating expenses and optimizing its operational efficiency to enhance profitability.
Furthermore, the pretax margin has demonstrated consistent growth over the years, climbing to 20.57% in 2024 from 14.93% in 2020. This suggests that Cintas has been successful in managing its pre-tax earnings in relation to its total revenue, which is a positive indicator of the company's overall financial health.
Lastly, the net profit margin has shown a favorable upward trajectory, rising to 16.38% in 2024 from 12.36% in 2020. This indicates that Cintas has been able to effectively manage its taxes and other expenses to significantly enhance its bottom-line profitability.
Overall, Cintas Corporation's profitability ratios demonstrate a positive trend, highlighting the company's ability to generate higher profits relative to its revenue and effectively manage its expenses to improve overall financial performance.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.56% | 21.09% | 19.48% | 16.82% | 15.16% |
| Return on assets (ROA) | 17.14% | 15.77% | 15.17% | 13.49% | 11.42% |
| Return on total capital | 32.62% | 28.41% | 27.41% | 26.00% | 20.15% |
| Return on equity (ROE) | 36.41% | 34.89% | 37.35% | 30.13% | 27.08% |
Cintas Corporation's profitability ratios have shown a consistent improvement over the past five years, reflecting the company's ability to generate earnings from its operations and effectively utilize its assets and capital.
The operating return on assets (Operating ROA) has steadily increased from 15.16% in 2020 to 22.56% in 2024, signifying that the company has become more efficient in generating operating income relative to its total assets.
Return on assets (ROA) has also shown an increasing trend, rising from 11.42% in 2020 to 17.14% in 2024. This indicates that Cintas has been able to improve its overall profitability by generating more profits from its assets over the years.
The return on total capital has shown a significant improvement, reaching 32.62% in 2024 from 20.15% in 2020. This indicates that the company has been successful in generating returns for both equity and debt holders, showcasing efficient capital utilization.
Return on equity (ROE) has also exhibited a positive trend, increasing from 27.08% in 2020 to 36.41% in 2024. This implies that Cintas has been able to provide higher returns to its shareholders, reflecting strong financial performance and effective management of equity investments.
Overall, the increasing profitability ratios suggest that Cintas Corporation has been successful in enhancing its financial performance, optimizing its asset utilization, and generating higher returns for its investors over the years.