Cintas Corporation (CTAS)

Operating return on assets (Operating ROA)

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Operating income	US$ in thousands	2,068,630	1,802,660	1,587,370	1,385,490	1,162,700
Total assets	US$ in thousands	9,168,820	8,546,360	8,147,260	8,236,820	7,669,880
Operating ROA		22.56%	21.09%	19.48%	16.82%	15.16%

May 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,068,630K ÷ $9,168,820K
= 22.56%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. A higher operating ROA indicates better operational efficiency and profitability.

Analyzing Cintas Corporation's operating ROA over the past five years reveals a positive trend. The operating ROA has been consistently increasing from 15.16% in 2020 to 22.56% in 2024. This indicates that the company has been able to improve its operational performance and profitability relative to its asset base over the years.

The improvement in operating ROA may suggest that Cintas Corporation has been effectively utilizing its assets to generate operating income. A higher operating ROA could be attributed to factors such as increased revenue, better cost management, and efficient asset utilization.

Overall, the rising trend in Cintas Corporation's operating ROA implies that the company is becoming more efficient in generating profits from its assets, which is a positive indicator of its financial health and operational performance.