Operating Profit Margin
since 2005
Calculation
Cintas Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2024 | 21.56% | = | 100 | × | 2,068,633) | ÷ | 9,596,615) |
| May 31, 2023 | 20.45% | = | 100 | × | 1,802,664) | ÷ | 8,815,769) |
| May 31, 2022 | 20.21% | = | 100 | × | 1,587,370) | ÷ | 7,854,459) |
| May 31, 2021 | 19.47% | = | 100 | × | 1,385,492) | ÷ | 7,116,340) |
| May 31, 2020 | 16.41% | = | 100 | × | 1,162,696) | ÷ | 7,085,120) |
| May 31, 2019 | 16.45% | = | 100 | × | 1,133,534) | ÷ | 6,892,303) |
| May 31, 2018 | 14.67% | = | 100 | × | 949,834) | ÷ | 6,476,632) |
| May 31, 2017 | 14.53% | = | 100 | × | 773,691) | ÷ | 5,323,381) |
| May 31, 2016 | 15.94% | = | 100 | × | 781,748) | ÷ | 4,905,458) |
| May 31, 2015 | 15.56% | = | 100 | × | 696,407) | ÷ | 4,476,886) |
| May 31, 2014 | 12.46% | = | 100 | × | 567,010) | ÷ | 4,551,812) |
| May 31, 2013 | 13.09% | = | 100 | × | 565,211) | ÷ | 4,316,471) |
| May 31, 2012 | 13.16% | = | 100 | × | 539,627) | ÷ | 4,102,000) |
| May 31, 2011 | 11.56% | = | 100 | × | 440,343) | ÷ | 3,810,384) |
| May 31, 2010 | 11.02% | = | 100 | × | 390,809) | ÷ | 3,547,339) |
| May 31, 2009 | 10.84% | = | 100 | × | 409,065) | ÷ | 3,774,685) |
| May 31, 2008 | 14.66% | = | 100 | × | 577,455) | ÷ | 3,937,900) |
| May 31, 2007 | 15.58% | = | 100 | × | 577,397) | ÷ | 3,706,900) |
| May 31, 2006 | 16.07% | = | 100 | × | 546,838) | ÷ | 3,403,608) |
| May 31, 2005 | 16.12% | = | 100 | × | 494,527) | ÷ | 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 company experienced a cyclical trajectory in its operating profit margins over the twenty-year period, characterized by a significant contraction in the late 2000s followed by a sustained and aggressive expansion starting in 2018. While both revenue and operating income grew substantially in absolute terms from 2005 to 2024, the efficiency of converting revenue into operating profit evolved through several distinct operational phases.
- Margin Compression and Volatility (2005–2014)
- A downward trend in profitability is observed between 2005 and 2009, with the operating profit margin declining from 16.12% to a period low of 10.84%. Despite revenue increasing from approximately 3.07 billion to 3.77 billion during this window, operating income fell from 494.5 million to 409.1 million by 2009, indicating a significant rise in operating costs relative to sales. A gradual recovery followed, with margins fluctuating between 11% and 13% through 2014.
- Operational Stabilization (2015–2017)
- Profitability returned to baseline levels during this period, with the margin peaking at 15.94% in 2016. This represented a return to the efficiency levels seen in 2005, although a slight correction to 14.53% occurred in 2017. During this phase, operating income began a more consistent upward climb, surpassing 770 million.
- Accelerated Margin Expansion (2018–2024)
- A strong and consistent growth phase is evident from 2018 onward. The operating profit margin rose steadily from 14.67% in 2018 to a high of 21.56% by May 31, 2024. This period is marked by operating income growing at a faster rate than revenue; while revenue increased by approximately 47% between 2018 and 2024, operating income increased by approximately 117%. This divergence indicates substantial improvements in operational leverage, cost management, or pricing power.
- Revenue and Income Correlation
- Over the full duration of the analysis, there is a clear positive correlation between scale and profitability in the latter half of the timeline. Total revenue grew from 3.07 billion in 2005 to 9.60 billion in 2024, while operating income grew from 494.5 million to 2.07 billion. The culmination of this trend in 2024 represents the highest level of both absolute operating income and percentage margin in the twenty-year history provided.
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