Return on Assets (ROA)
since 2005
Calculation
Cintas Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2024 | 17.14% | = | 100 | × | 1,571,592) | ÷ | 9,168,817) |
| May 31, 2023 | 15.77% | = | 100 | × | 1,348,010) | ÷ | 8,546,356) |
| May 31, 2022 | 15.17% | = | 100 | × | 1,235,757) | ÷ | 8,147,256) |
| May 31, 2021 | 13.49% | = | 100 | × | 1,110,968) | ÷ | 8,236,823) |
| May 31, 2020 | 11.42% | = | 100 | × | 876,037) | ÷ | 7,669,885) |
| May 31, 2019 | 11.90% | = | 100 | × | 884,981) | ÷ | 7,436,662) |
| May 31, 2018 | 12.11% | = | 100 | × | 842,586) | ÷ | 6,958,214) |
| May 31, 2017 | 7.02% | = | 100 | × | 480,708) | ÷ | 6,844,057) |
| May 31, 2016 | 16.90% | = | 100 | × | 693,520) | ÷ | 4,104,393) |
| May 31, 2015 | 10.27% | = | 100 | × | 430,618) | ÷ | 4,192,460) |
| May 31, 2014 | 8.39% | = | 100 | × | 374,442) | ÷ | 4,462,452) |
| May 31, 2013 | 7.26% | = | 100 | × | 315,442) | ÷ | 4,345,632) |
| May 31, 2012 | 7.15% | = | 100 | × | 297,637) | ÷ | 4,160,906) |
| May 31, 2011 | 5.68% | = | 100 | × | 246,989) | ÷ | 4,351,940) |
| May 31, 2010 | 5.43% | = | 100 | × | 215,620) | ÷ | 3,969,736) |
| May 31, 2009 | 6.08% | = | 100 | × | 226,357) | ÷ | 3,720,951) |
| May 31, 2008 | 8.81% | = | 100 | × | 335,405) | ÷ | 3,808,601) |
| May 31, 2007 | 9.37% | = | 100 | × | 334,538) | ÷ | 3,570,480) |
| May 31, 2006 | 9.55% | = | 100 | × | 327,178) | ÷ | 3,425,237) |
| May 31, 2005 | 9.82% | = | 100 | × | 300,518) | ÷ | 3,059,744) |
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 performance from 2005 to 2024 is characterized by a significant expansion in both net income and total assets, with Return on Assets (ROA) exhibiting three distinct phases: a period of contraction, a volatile recovery, and a sustained upward trajectory.
- Initial Decline and Trough (2005–2010)
- A consistent downward trend in ROA is observed during this period, falling from 9.82% in 2005 to a low of 5.43% in 2010. This decline was driven by a reduction in net income, which decreased from approximately $300.5 million to $215.6 million, while total assets continued to grow from $3.06 billion to nearly $4 billion, indicating a decrease in asset utilization efficiency.
- Recovery and Volatility (2011–2017)
- Efficiency improved steadily between 2011 and 2016, with ROA peaking at 16.90% in 2016. However, a sharp correction occurred in 2017, where ROA dropped to 7.02%. This volatility is attributed to a substantial increase in the asset base, which expanded from approximately $4.1 billion in 2016 to $6.8 billion in 2017, temporarily outpacing the growth of net income.
- Sustained Growth and Optimization (2018–2024)
- The final period is marked by a strong and consistent increase in profitability relative to assets. ROA climbed from 12.11% in 2018 to a peak of 17.14% in 2024. This trend reflects a highly scalable operating model, as net income grew aggressively from $842.6 million to $1.57 billion, effectively absorbing the growth of total assets which reached $9.17 billion by 2024.
- Long-term Asset and Income Correlation
- Over the full twenty-year horizon, net income increased by approximately 423%, while total assets grew by approximately 199%. The fact that income growth significantly outpaced asset growth resulted in a long-term improvement in ROA, suggesting enhanced operational efficiency and higher returns on invested capital over time.
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Comparison to Industry (Industrials)
Cintas Corp., ROA, long-term trends, comparison to industry (industrials)
| Cintas Corp. | Industrials | |
|---|---|---|
| May 31, 2024 | 17.14% | 5.24% |
| May 31, 2023 | 15.77% | 5.61% |
| May 31, 2022 | 15.17% | 3.31% |
| May 31, 2021 | 13.49% | 3.40% |
| May 31, 2020 | 11.42% | 0.04% |
| May 31, 2019 | 11.90% | 2.56% |
| May 31, 2018 | 12.11% | 3.16% |
| May 31, 2017 | 7.02% | 3.59% |
| May 31, 2016 | 16.90% | 4.55% |
| May 31, 2015 | 10.27% | 3.52% |
| May 31, 2014 | 8.39% | 4.31% |
| May 31, 2013 | 7.26% | 3.91% |
| May 31, 2012 | 7.15% | 3.38% |
| May 31, 2011 | 5.68% | 3.69% |
| May 31, 2010 | 5.43% | 3.03% |
| May 31, 2009 | 6.08% | 2.24% |
| May 31, 2008 | 8.81% | 3.10% |
| May 31, 2007 | 9.37% | 3.87% |
| May 31, 2006 | 9.55% | 6.41% |
| May 31, 2005 | 9.82% | 1.42% |
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).