Cintas Corporation (CTAS)

Gross profit margin

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Gross profit	US$ in thousands	4,686,420	4,173,370	3,632,250	3,314,650	3,233,750
Revenue	US$ in thousands	9,596,620	8,706,250	7,777,990	7,040,630	7,085,120
Gross profit margin		48.83%	47.94%	46.70%	47.08%	45.64%

May 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,686,420K ÷ $9,596,620K
= 48.83%

Cintas Corporation's gross profit margin has demonstrated a generally positive trend over the past five years, increasing from 45.64% in May 2020 to 48.83% in May 2024. This upward trajectory indicates an improvement in the company's ability to generate profit from its core operations after accounting for the cost of goods sold.

The progressive rise in the gross profit margin suggests that Cintas has been effectively managing its production costs and pricing strategies, resulting in a higher percentage of revenue retained as gross profit. This trend can be indicative of enhanced operational efficiency, pricing power, economies of scale, or product mix optimization within the organization.

Overall, the consistent improvement in the gross profit margin reflects positively on Cintas Corporation's financial performance and competitive position within its industry during the period under review.