Cintas Corporation (CTAS)

Return on equity (ROE)

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Net income	US$ in thousands	1,571,590	1,348,010	1,235,760	1,110,970	876,037
Total stockholders’ equity	US$ in thousands	4,316,370	3,863,990	3,308,200	3,687,850	3,235,200
ROE		36.41%	34.89%	37.35%	30.13%	27.08%

May 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,571,590K ÷ $4,316,370K
= 36.41%

The Return on Equity (ROE) is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profit from its shareholders' equity.

Over the past five years, Cintas Corporation has shown a consistent upward trend in its ROE, indicating an improvement in its profitability and efficiency in utilizing shareholders' equity. In the most recent fiscal year ending on May 31, 2024, Cintas achieved an ROE of 36.41%, which is higher than the previous year's ROE of 34.89%.

The company's ability to increase its ROE over the years suggests effective management of its assets and liabilities to generate higher returns for its shareholders. This consistent improvement in ROE reflects positively on Cintas' financial performance and indicates a strong financial position.

Overall, Cintas Corporation's increasing ROE trend demonstrates a positive growth trajectory and efficient utilization of shareholder funds to generate profit, showcasing a healthy and sustainable business model.