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Cintas Corp. (NASDAQ:CTAS)

This company has been moved to the archive! The financial data has not been updated since January 8, 2025.

Common-Size Income Statement

Cintas Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Uniform rental and facility services 77.79 78.24 79.28 79.95 79.65 80.56
Other 22.21 21.76 20.72 20.05 20.35 19.44
Revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of uniform rental and facility services -40.28 -41.20 -42.22 -41.92 -43.12 -43.93
Cost of other -10.89 -11.46 -11.53 -11.50 -11.24 -10.68
Cost of revenue -51.17% -52.66% -53.76% -53.42% -54.36% -54.61%
Gross margin 48.83% 47.34% 46.24% 46.58% 45.64% 45.39%
Selling and administrative expenses -27.28 -26.89 -26.03 -27.11 -29.23 -28.74
G&K Services, Inc. integration expenses 0.00 0.00 0.00 0.00 0.00 -0.21
Operating income 21.56% 20.45% 20.21% 19.47% 16.41% 16.45%
Gain on sale of a cost method investment 0.00 0.00 0.00 0.00 0.00 1.01
Interest income 0.06 0.02 0.00 0.01 0.01 0.02
Interest expense -1.05 -1.26 -1.13 -1.38 -1.49 -1.48
Income before income taxes 20.57% 19.21% 19.08% 18.10% 14.94% 15.99%
Income taxes -4.19 -3.92 -3.35 -2.48 -2.57 -3.19
Income from continuing operations 16.38% 15.29% 15.73% 15.61% 12.37% 12.81%
Income (loss) from discontinued operations, net of tax 0.00 0.00 0.00 0.00 0.00 0.03
Net income 16.38% 15.29% 15.73% 15.61% 12.36% 12.84%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

The financial performance of the company demonstrates a consistent upward trend in profitability and operational efficiency over the six-year period ending May 31, 2024. A sustained expansion in both gross and operating margins indicates successful cost management and the realization of economies of scale.

Revenue Composition
A gradual shift in the revenue mix is observed. The core segment of uniform rental and facility services declined from 80.56% of total revenue in 2019 to 77.79% in 2024. Conversely, the "Other" revenue category grew from 19.44% to 22.21% during the same period, suggesting a strategic diversification of income streams.
Gross Margin Expansion
Gross margins increased steadily from 45.39% in 2019 to 48.83% in 2024. This improvement is primarily driven by a reduction in the cost of uniform rental and facility services, which dropped from 43.93% to 40.28% of revenue. Total cost of revenue improved from 54.61% to 51.17%, reflecting enhanced production efficiency or pricing power.
Operating Efficiency
Operating income as a percentage of revenue rose from 16.45% in 2019 to 21.56% in 2024. While selling and administrative expenses fluctuated, they generally trended downward from a peak of 29.23% in 2020 to 27.28% in 2024. The elimination of integration expenses related to G&K Services after 2019 further contributed to the strengthening of the operating profile.
Net Profitability and Tax Impact
Net income margins expanded from 12.84% in 2019 to 16.38% in 2024. Income before taxes rose from 15.99% to 20.57%, though this growth was partially offset by an increase in the effective tax burden, which rose from 3.19% to 4.19% of total revenue over the period. Interest expenses as a percentage of revenue also saw a reduction, falling from 1.48% in 2019 to 1.05% in 2024.

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