Name: Cintas Corp. (NASDAQ:CTAS) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Cintas Corp., consolidated income statement

US$ in thousands

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	7,465,199)	6,897,130)	6,226,980)	5,689,632)	5,643,494)	5,552,430)
Other	2,131,416)	1,918,639)	1,627,479)	1,426,708)	1,441,626)	1,339,873)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Cost of uniform rental and facility services	(3,865,071)	(3,632,175)	(3,316,433)	(2,983,514)	(3,055,145)	(3,027,599)
Cost of other	(1,045,128)	(1,010,226)	(905,780)	(818,175)	(796,227)	(736,116)
Cost of revenue	(4,910,199)	(4,642,401)	(4,222,213)	(3,801,689)	(3,851,372)	(3,763,715)
Gross margin	4,686,416)	4,173,368)	3,632,246)	3,314,651)	3,233,748)	3,128,588)
Selling and administrative expenses	(2,617,783)	(2,370,704)	(2,044,876)	(1,929,159)	(2,071,052)	(1,980,644)
G&K Services, Inc. integration expenses	—)	—)	—)	—)	—)	(14,410)
Operating income	2,068,633)	1,802,664)	1,587,370)	1,385,492)	1,162,696)	1,133,534)
Gain on sale of a cost method investment	—)	—)	—)	—)	—)	69,373)
Interest income	5,742)	1,716)	242)	467)	988)	1,228)
Interest expense	(100,740)	(111,232)	(88,844)	(98,210)	(105,393)	(101,736)
Income before income taxes	1,973,635)	1,693,148)	1,498,768)	1,287,749)	1,058,291)	1,102,399)
Income taxes	(402,043)	(345,138)	(263,011)	(176,781)	(181,931)	(219,764)
Income from continuing operations	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,360)	882,635)
Income (loss) from discontinued operations, net of tax	—)	—)	—)	—)	(323)	2,346)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)

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).

Financial performance from 2019 to 2024 exhibits a consistent upward trajectory in both top-line revenue and bottom-line profitability. Total revenue grew from 6.89 billion USD in 2019 to 9.60 billion USD in 2024, representing a sustained expansion in market reach and service delivery. This growth is mirrored in net income, which increased from 884.98 million USD to 1.57 billion USD over the same period.

Revenue Composition and Growth: The primary driver of growth is the Uniform rental and facility services segment, which rose from 5.55 billion USD in 2019 to 7.47 billion USD in 2024. The Other revenue stream also demonstrated steady growth, increasing from 1.34 billion USD to 2.13 billion USD. The combined effect indicates a diversified growth strategy where both core and ancillary services are scaling simultaneously.
Gross Profitability and Margin Expansion: Gross margin expanded from 3.13 billion USD in 2019 to 4.69 billion USD in 2024. The gross margin percentage improved from approximately 45.3% in 2019 to 48.8% in 2024. This expansion suggests improved cost management of revenue or an increase in pricing power, as cost of revenue grew at a slower pace than total revenue.
Operating Efficiency: Operating income showed a significant increase, rising from 1.13 billion USD in 2019 to 2.07 billion USD in 2024. While selling and administrative expenses increased from 1.98 billion USD to 2.62 billion USD, they did so at a rate lower than the growth in gross margin. This creates an operating leverage effect, resulting in an operating margin increase from 16.4% in 2019 to 21.5% in 2024.
Net Income and Fiscal Obligations: Net income growth was steady, with a notable acceleration after 2021. Interest expenses remained relatively stable, fluctuating between 88.8 million USD and 111.2 million USD, indicating a consistent debt service profile. Income tax expenses grew in proportion to increased taxable income, rising from 219.76 million USD in 2019 to 402.04 million USD in 2024.

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