Cintas Corporation (CTAS)

Return on equity (ROE)

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020
Net income (ttm)	US$ in thousands	1,812,281	1,778,340	1,712,422	1,638,540	1,571,592	1,503,478	1,431,726	1,381,406	1,348,010	1,296,270	1,285,891	1,256,267	1,235,757	1,209,018	1,151,954	1,142,142	1,110,968	987,831	963,967	925,230
Total stockholders’ equity	US$ in thousands	4,684,480	4,592,250	4,293,110	4,021,420	4,316,370	4,234,080	3,994,480	4,077,640	3,863,990	3,633,260	3,430,540	3,229,630	3,308,200	3,293,900	3,563,130	3,309,200	3,687,850	3,816,510	3,597,960	3,604,800
ROE		38.69%	38.72%	39.89%	40.75%	36.41%	35.51%	35.84%	33.88%	34.89%	35.68%	37.48%	38.90%	37.35%	36.70%	32.33%	34.51%	30.13%	25.88%	26.79%	25.67%

May 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,812,281K ÷ $4,684,480K
= 38.69%

The analysis of Cintas Corporation’s return on equity (ROE) over the period from August 31, 2020, to May 31, 2025, reveals a generally positive trend characterized by periods of growth, stability, and slight fluctuations.

Initially, the ROE in August 2020 stood at approximately 25.67%. This figure experienced a gradual upward trajectory, reaching a peak of 38.90% in August 2022, indicating improved efficiency in generating net income relative to shareholders' equity over this period. The substantial increase during this timeframe suggests effective operational performance and potentially better profit margins, efficient asset utilization, or a combination of both.

Following this peak, the ROE exhibited some stabilization and minor fluctuations, declining slightly to approximately 35.68% in February 2023 and maintaining a relatively stable range through November 2023, with a value of 35.84%. These fluctuations may reflect normal variations in earnings, changes in leverage, or adjustments in equity levels.

The subsequent period shows a general upward trend again, with the ROE rising to 40.75% as of August 2024. The increase indicates enhanced profitability relative to shareholders' equity, which could result from improved operational efficiency, higher net income margins, or strategic financial management. The ROE slightly decreased in early 2025 but remained strong at approximately 38.69% in May 2025, maintaining a ratio well above the initial levels observed in 2020.

Overall, the data demonstrates that Cintas Corporation has experienced a substantial and sustained improvement in its return on equity over the analyzed period, highlighting the company's effective leverage and operational performance in generating returns for shareholders. The presence of fluctuations within this period aligns with typical economic and operational cycles, but the overarching trend highlights solid financial health and positive profitability momentum.