Cintas Corporation (CTAS)

Return on total capital

		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	May 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,322,194	2,232,723	2,143,683	2,081,473	1,999,866	1,923,284	1,866,212	1,804,380	1,737,248	1,697,724	1,633,730	1,588,219	1,152,828	1,071,665	1,043,392	998,367	857,825	845,757	827,098	782,999
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	3,235,200
Return on total capital		50.57%	52.01%	53.31%	48.22%	47.23%	48.15%	45.77%	46.70%	47.82%	49.49%	50.59%	48.01%	35.00%	30.08%	31.53%	27.07%	22.48%	23.51%	22.94%	24.20%

February 28, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,322,194K ÷ ($—K + $4,592,250K)
= 50.57%

The analysis of Cintas Corporation's return on total capital over the period indicates a pattern of overall strong profitability with fluctuations that reflect dynamic changes in operational efficiency and capital management.

Initially, the return on total capital was 24.20% as of May 31, 2020, and experienced a slight decline to 22.94% by August 31, 2020. The subsequent period shows a modest recovery reaching 23.51% by November 30, 2020, before dipping again to 22.48% as of February 28, 2021. This period reflects some volatility, likely attributable to operational or market fluctuations during that timeframe.

From May 31, 2021, onward, there is a notable upward trend, with the return increasing to 27.07% and then surging to 31.53% by August 31, 2021, and further to 30.08% by November 30, 2021. A significant acceleration occurs in the subsequent year, with the return rising sharply to 35.00% as of February 28, 2022, and continuing an ascending trajectory to reach 48.01% by May 31, 2022. This upward trend sustains through the latter part of 2022 and into early 2023, with the return on total capital maintaining elevated levels—posting 50.59% on August 31, 2022, and remaining above 49% through November 2022.

The subsequent period reflects a stabilizing but still high return, with figures around 47–48%, specifically 47.82% on February 29, 2024, and 48.22% as of May 31, 2024. A notable increase is observed with the return climbing to 53.31% on August 31, 2024, representing a peak within this interval, followed by a slight decline to 52.01% in November 2024.

Looking ahead, the data shows a mild decrease to 50.57% as of February 28, 2025, but the overall trend remains elevated compared to pre-2021 levels. Throughout this period, Cintas has demonstrated a capacity to generate substantial returns relative to its total capital, especially from mid-2021 onward, indicating improved operational efficiency, effective capital utilization, and possibly successful strategic initiatives. The fluctuations suggest responsiveness to market conditions and internal operational factors, but the generally high level of return underscores a robust profitability profile.