Cintas Corporation (CTAS)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,068,630 | 1,804,380 | 1,587,610 | 1,385,960 | 1,163,360 |
| Long-term debt | US$ in thousands | 2,025,930 | 2,486,400 | 2,483,930 | 1,642,830 | 2,539,700 |
| Total stockholders’ equity | US$ in thousands | 4,316,370 | 3,863,990 | 3,308,200 | 3,687,850 | 3,235,200 |
| Return on total capital | 32.62% | 28.41% | 27.41% | 26.00% | 20.15% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,068,630K ÷ ($2,025,930K + $4,316,370K)
= 32.62%
Cintas Corporation's return on total capital has demonstrated a consistent upward trend over the past five years, indicating increasingly efficient utilization of both debt and equity to generate profits. The return on total capital has increased from 20.15% in May 2020 to 32.62% in May 2024. This improvement suggests that the company's management has been successful in deploying its capital resources effectively and maximizing returns for shareholders. The steady growth in return on total capital reflects Cintas Corporation's strong financial performance and efficient capital management practices, positioning the company favorably in terms of generating value from its invested capital.
Peer comparison
May 31, 2024