Cintas Corporation (CTAS)

Return on total capital

		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	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,070,754	1,994,802	1,920,257	1,865,083	1,804,380	1,737,248	1,697,724	1,633,730	1,587,612	1,539,646	1,458,540	1,430,346	1,385,959	1,237,045	1,225,489	1,206,823	1,163,361	1,270,361	1,236,098	1,247,097
Long-term debt	US$ in thousands	2,025,930	2,474,910	2,474,290	2,477,090	2,486,400	2,485,950	2,485,280	2,484,600	2,483,930	1,343,510	1,343,370	1,343,220	1,642,830	2,291,420	2,290,930	2,290,450	2,539,700	2,539,160	2,538,610	2,538,060
Total stockholders’ equity	US$ in thousands	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	3,324,310	3,104,970	3,050,710
Return on total capital		32.65%	29.73%	29.69%	28.45%	28.41%	28.39%	28.70%	28.59%	27.41%	33.20%	29.73%	30.74%	26.00%	20.25%	20.81%	20.47%	20.15%	21.67%	21.90%	22.31%

May 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,070,754K ÷ ($2,025,930K + $4,316,370K)
= 32.65%

The return on total capital for Cintas Corporation has shown a consistent and strong performance over the past few quarters. The ratio has been steadily increasing from 20.47% in November 2020 to a peak of 32.65% in May 2024, signifying the company's ability to generate significant returns relative to the total capital employed.

The company's return on total capital peaked in the most recent quarter, indicating improved efficiency and profitability in utilizing its capital resources. This trend suggests that Cintas Corporation has been effectively managing its capital investments and generating higher returns for its stakeholders.

Overall, the upward trajectory of the return on total capital reflects positively on Cintas Corporation's financial performance and efficiency in utilizing its capital base to generate returns for its investors.