Return on Equity (ROE)
since 2005
Calculation
Cintas Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2024 | 36.41% | = | 100 | × | 1,571,592) | ÷ | 4,316,372) |
| May 31, 2023 | 34.89% | = | 100 | × | 1,348,010) | ÷ | 3,863,986) |
| May 31, 2022 | 37.35% | = | 100 | × | 1,235,757) | ÷ | 3,308,196) |
| May 31, 2021 | 30.13% | = | 100 | × | 1,110,968) | ÷ | 3,687,847) |
| May 31, 2020 | 27.08% | = | 100 | × | 876,037) | ÷ | 3,235,202) |
| May 31, 2019 | 29.47% | = | 100 | × | 884,981) | ÷ | 3,002,721) |
| May 31, 2018 | 27.93% | = | 100 | × | 842,586) | ÷ | 3,016,526) |
| May 31, 2017 | 20.87% | = | 100 | × | 480,708) | ÷ | 2,302,793) |
| May 31, 2016 | 37.64% | = | 100 | × | 693,520) | ÷ | 1,842,659) |
| May 31, 2015 | 22.28% | = | 100 | × | 430,618) | ÷ | 1,932,455) |
| May 31, 2014 | 17.08% | = | 100 | × | 374,442) | ÷ | 2,192,858) |
| May 31, 2013 | 14.33% | = | 100 | × | 315,442) | ÷ | 2,201,492) |
| May 31, 2012 | 13.91% | = | 100 | × | 297,637) | ÷ | 2,139,135) |
| May 31, 2011 | 10.73% | = | 100 | × | 246,989) | ÷ | 2,302,649) |
| May 31, 2010 | 8.51% | = | 100 | × | 215,620) | ÷ | 2,534,029) |
| May 31, 2009 | 9.56% | = | 100 | × | 226,357) | ÷ | 2,367,409) |
| May 31, 2008 | 14.88% | = | 100 | × | 335,405) | ÷ | 2,254,131) |
| May 31, 2007 | 15.43% | = | 100 | × | 334,538) | ÷ | 2,167,738) |
| May 31, 2006 | 15.67% | = | 100 | × | 327,178) | ÷ | 2,087,963) |
| May 31, 2005 | 14.28% | = | 100 | × | 300,518) | ÷ | 2,104,135) |
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 substantial growth in net income and a significant structural improvement in capital efficiency. While the early portion of the period showed moderate stability, the latter decade reflects an accelerated trajectory in both profitability and the return generated on shareholders' equity.
- Net Income Trends
- Net income exhibited a long-term upward trend, rising from US$ 300.5 million in 2005 to US$ 1.57 billion in 2024. A notable period of contraction occurred between 2009 and 2010, where income fell to a low of US$ 215.6 million. Following this trough, growth accelerated sharply after 2014, with net income increasing from US$ 374.4 million in 2014 to US$ 693.5 million in 2016, eventually sustaining a growth path toward the 2024 peak.
- Shareholders' Equity Evolution
- Equity remained relatively range-bound between US$ 1.9 billion and US$ 2.5 billion from 2005 through 2016. A period of equity reduction was observed between 2011 and 2016, with the balance reaching a minimum of US$ 1.84 billion. From 2017 onward, there was a consistent and significant expansion of the equity base, which grew to US$ 4.32 billion by May 31, 2024.
- Return on Equity (ROE) Performance
- The ROE shifted through three distinct phases. From 2005 to 2008, ROE was stable, averaging approximately 15%. A period of volatility followed, with a sharp decline to 8.51% in 2010 before recovering to 17.08% by 2014. Starting in 2015, ROE entered a high-performance phase, jumping to 37.64% in 2016 and remaining consistently above 27% for the remainder of the period, ending at 36.41% in 2024.
- Analysis of Profitability and Efficiency Correlation
- The expansion of ROE post-2014 was driven by a divergence between profit growth and equity levels. The spike in 2016 resulted from a combination of surging net income and a contraction in shareholders' equity. Even as the equity base expanded significantly between 2017 and 2024, the corresponding growth in net income was sufficient to maintain an ROE consistently above 30% in most recent years, indicating a heightened capacity to generate earnings relative to invested capital.
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Comparison to Industry (Industrials)
Cintas Corp., ROE, long-term trends, comparison to industry (industrials)
| Cintas Corp. | Industrials | |
|---|---|---|
| May 31, 2024 | 36.41% | 23.51% |
| May 31, 2023 | 34.89% | 27.70% |
| May 31, 2022 | 37.35% | 15.38% |
| May 31, 2021 | 30.13% | 15.38% |
| May 31, 2020 | 27.08% | 0.24% |
| May 31, 2019 | 29.47% | 14.56% |
| May 31, 2018 | 27.93% | 17.95% |
| May 31, 2017 | 20.87% | 18.24% |
| May 31, 2016 | 37.64% | 21.69% |
| May 31, 2015 | 22.28% | 16.11% |
| May 31, 2014 | 17.08% | 19.68% |
| May 31, 2013 | 14.33% | 16.40% |
| May 31, 2012 | 13.91% | 17.20% |
| May 31, 2011 | 10.73% | 20.10% |
| May 31, 2010 | 8.51% | 16.41% |
| May 31, 2009 | 9.56% | 12.84% |
| May 31, 2008 | 14.88% | 20.74% |
| May 31, 2007 | 15.43% | 20.36% |
| May 31, 2006 | 15.67% | 32.16% |
| May 31, 2005 | 14.28% | 7.80% |
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).