Net Profit Margin
since 2005
Calculation
Cintas Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2024 | 16.38% | = | 100 | × | 1,571,592) | ÷ | 9,596,615) |
| May 31, 2023 | 15.29% | = | 100 | × | 1,348,010) | ÷ | 8,815,769) |
| May 31, 2022 | 15.73% | = | 100 | × | 1,235,757) | ÷ | 7,854,459) |
| May 31, 2021 | 15.61% | = | 100 | × | 1,110,968) | ÷ | 7,116,340) |
| May 31, 2020 | 12.36% | = | 100 | × | 876,037) | ÷ | 7,085,120) |
| May 31, 2019 | 12.84% | = | 100 | × | 884,981) | ÷ | 6,892,303) |
| May 31, 2018 | 13.01% | = | 100 | × | 842,586) | ÷ | 6,476,632) |
| May 31, 2017 | 9.03% | = | 100 | × | 480,708) | ÷ | 5,323,381) |
| May 31, 2016 | 14.14% | = | 100 | × | 693,520) | ÷ | 4,905,458) |
| May 31, 2015 | 9.62% | = | 100 | × | 430,618) | ÷ | 4,476,886) |
| May 31, 2014 | 8.23% | = | 100 | × | 374,442) | ÷ | 4,551,812) |
| May 31, 2013 | 7.31% | = | 100 | × | 315,442) | ÷ | 4,316,471) |
| May 31, 2012 | 7.26% | = | 100 | × | 297,637) | ÷ | 4,102,000) |
| May 31, 2011 | 6.48% | = | 100 | × | 246,989) | ÷ | 3,810,384) |
| May 31, 2010 | 6.08% | = | 100 | × | 215,620) | ÷ | 3,547,339) |
| May 31, 2009 | 6.00% | = | 100 | × | 226,357) | ÷ | 3,774,685) |
| May 31, 2008 | 8.52% | = | 100 | × | 335,405) | ÷ | 3,937,900) |
| May 31, 2007 | 9.02% | = | 100 | × | 334,538) | ÷ | 3,706,900) |
| May 31, 2006 | 9.61% | = | 100 | × | 327,178) | ÷ | 3,403,608) |
| May 31, 2005 | 9.80% | = | 100 | × | 300,518) | ÷ | 3,067,283) |
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), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$ in thousands
The financial trajectory from 2005 to 2024 demonstrates a significant long-term expansion in profitability, characterized by an initial period of contraction followed by a sustained upward shift in efficiency and margin expansion.
- Initial Margin Contraction (2005–2009)
- A consistent downward trend in net profit margin is observed during the first five years of the period, falling from 9.80% in 2005 to a minimum of 6.00% in 2009. This decline occurred despite revenue growth peaking in 2008, suggesting that operating expenses or external economic pressures outpaced revenue gains during this timeframe.
- Recovery and Transitional Volatility (2010–2017)
- A recovery phase began in 2010, with margins steadily climbing back toward the 8% to 9% range by 2015. A notable volatility is observed between 2016 and 2017, where the margin spiked to 14.14% before correcting sharply to 9.03%. This period represents a transition from post-recession recovery toward a more aggressive profitability profile.
- Sustained Profitability Expansion (2018–2024)
- From 2018 onward, a structural increase in profitability is evident. The net profit margin stabilized at a significantly higher plateau, rising from 13.01% in 2018 to a peak of 16.38% by 2024. This expansion coincided with substantial revenue growth, with total revenue increasing from approximately 6.48 billion in 2018 to 9.60 billion in 2024, indicating strong operating leverage and improved cost management.
- Overall Financial Scaling
- The correlation between rising revenue and increasing margins indicates successful operational scaling. Net income grew from 300.5 million in 2005 to 1.57 billion in 2024. Because net income grew at a faster rate than revenue over the full duration, the company achieved a significant increase in the percentage of each revenue dollar converted into actual profit.
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Comparison to Industry (Industrials)
Cintas Corp., net profit margin, long-term trends, comparison to industry (industrials)
| Cintas Corp. | Industrials | |
|---|---|---|
| May 31, 2024 | 16.38% | 8.06% |
| May 31, 2023 | 15.29% | 8.32% |
| May 31, 2022 | 15.73% | 5.04% |
| May 31, 2021 | 15.61% | 5.85% |
| May 31, 2020 | 12.36% | 0.09% |
| May 31, 2019 | 12.84% | 4.11% |
| May 31, 2018 | 13.01% | 4.75% |
| May 31, 2017 | 9.03% | 5.79% |
| May 31, 2016 | 14.14% | 7.43% |
| May 31, 2015 | 9.62% | 6.48% |
| May 31, 2014 | 8.23% | 8.76% |
| May 31, 2013 | 7.31% | 8.23% |
| May 31, 2012 | 7.26% | 7.39% |
| May 31, 2011 | 6.48% | 8.26% |
| May 31, 2010 | 6.08% | 7.48% |
| May 31, 2009 | 6.00% | 5.76% |
| May 31, 2008 | 8.52% | 7.27% |
| May 31, 2007 | 9.02% | 9.56% |
| May 31, 2006 | 9.61% | 14.87% |
| May 31, 2005 | 9.80% | 3.55% |
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), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).