Cintas Corporation (CTAS)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.04% | 48.83% | 47.34% | 46.24% | 46.58% |
| Operating profit margin | 22.82% | 21.56% | 20.45% | 20.21% | 19.47% |
| Pretax margin | 21.90% | 20.57% | 19.21% | 19.08% | 18.10% |
| Net profit margin | 17.53% | 16.38% | 15.29% | 15.73% | 15.61% |
Analyzing Cintas Corporation’s profitability ratios over the period from May 31, 2021, to May 31, 2025, reveals a general trend of improvement in profitability metrics, with some fluctuations observed in specific ratios.
The Gross Profit Margin demonstrates a largely stable and slightly increasing trend, rising from 46.58% in 2021 to a peak of 48.83% in 2024. The marginal decrease observed in 2022 to 46.24%, followed by an increase in subsequent years, indicates effective management of cost of goods sold relative to revenue, suggesting enhanced pricing strategies or improved operational efficiencies. The substantial increase in 2024 highlights a strengthening ability to retain more revenue after direct costs, although the 2025 figure appears to be an anomaly at 0.00%, which likely indicates a data error or missing data.
Operating Profit Margin has shown a steady upward trajectory, from 19.47% in 2021 to 22.82% in 2025. This consistent improvement reflects enhanced operational efficiencies and effective control over operating expenses, contributing to higher profit generation from core business activities.
Pre-Tax Margin also exhibits an increasing trend, rising from 18.10% in 2021 to 21.90% in 2025. The growth in this ratio suggests that the company’s ability to generate profit before tax obligations has strengthened, possibly due to improved margins at the operating level or lower non-operating expenses.
The Net Profit Margin, which measures the overall profitability after all expenses, follows a positive trend, climbing from 15.61% in 2021 to 17.53% in 2025. This indicates that the company has been successful in translating gross and operating profitability into bottom-line earnings, reflecting efficient tax management and other non-operating considerations.
Overall, Cintas Corporation’s profitability ratios demonstrate a consistent pattern of improvement over the analyzed period, reflecting effective management strategies, operational efficiencies, and favorable market positioning. Nonetheless, the apparent anomaly in the 2025 gross profit margin warrants further verification for accurate interpretation.
Return on investment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 24.02% | 22.56% | 21.09% | 19.48% | 16.82% |
| Return on assets (ROA) | 18.45% | 17.14% | 15.77% | 15.17% | 13.49% |
| Return on total capital | 50.49% | 48.22% | 46.91% | 48.07% | 37.63% |
| Return on equity (ROE) | 38.69% | 36.41% | 34.89% | 37.35% | 30.13% |
The profitability ratios for Cintas Corporation over the period from May 31, 2021, to May 31, 2024, reveal a consistent upward trend in key performance indicators, reflecting enhanced efficiency and profitability.
The Operating Return on Assets (Operating ROA) demonstrates a steady increase from 16.82% in 2021 to 19.48% in 2022, reaching 21.09% in 2023, and further rising to 22.56% in 2024. This progression indicates that the company's core operations have become progressively more effective in generating operating income relative to its total assets. The increasing trend signifies improvements in operational efficiencies and margin management.
Similarly, the Return on Assets (ROA) follows an upward trajectory, beginning at 13.49% in 2021, then climbing to 15.17% in 2022, 15.77% in 2023, and 17.14% in 2024. This ratio reflects the overall profitability of assets, inclusive of operational and non-operational factors. The growth suggests that the company has been able to generate higher net income per dollar of assets over time.
The Return on Total Capital shows a notable increase from 37.63% in 2021 to 48.07% in 2022 and 46.91% in 2023, reaching 48.22% in 2024. This ratio assesses the profitability of all capital invested in the company, signaling the company's ability to effectively utilize both debt and equity to produce profits. The upward trend indicates efficient capital deployment and strong overall fiscal performance.
Return on Equity (ROE) exhibits a substantial rise from 30.13% in 2021 to 37.35% in 2022, with a slight decline to 34.89% in 2023, followed by an increase again to 36.41% in 2024. The generally high and improving ROE figures illustrate that the company has been successful in generating significant returns for its shareholders, with effective use of equity capital.
Overall, the data depict a period of sustained improvement in Cintas Corporation's profitability ratios, reflecting robust operational performance, effective asset utilization, and strong shareholder returns. The trend indicates the company's ongoing ability to generate higher income relative to its assets and capital investments, underpinning its competitive position in the industry.