Cintas Corp. (NASDAQ:CTAS)

The analysis of the annual financial data reveals several noteworthy trends in the company's profitability, equity base, and return on equity (ROE) over a 20-year period.

Net Income

The net income exhibits an overall upward trajectory from 2005 through 2024, increasing from approximately 300.5 million US dollars in 2005 to over 1.57 billion US dollars in 2024. Although the long-term trend is positive, there are periods of volatility. For instance, net income decreases notably between 2008 (335.4 million) and 2010 (215.6 million), reflecting a downturn likely linked to external economic factors. After 2010, net income generally recovers and grows steadily, reaching a peak in 2018 at over 842.5 million, a brief dip in 2019 and 2020, followed by a continued rise through 2024. This pattern indicates resilience and consistent profitability growth after cyclical challenges.

Shareholders’ Equity

Shareholders' equity presents a generally increasing trend from 2005 to 2024, starting at roughly 2.1 billion US dollars and rising to approximately 4.3 billion US dollars. However, fluctuations appear within the trend. For example, equity peaks in 2010 at 2.5 billion, declines in the years following until 2016, and then shows a significant increase after 2016 with large growth through 2018 and stabilizes at a higher level beyond 2020. These variations may reflect changes in retained earnings, capital structure, or adjustments linked to net income and dividend policies.

Return on Equity (ROE)

ROE, measuring profitability relative to shareholders' equity, shows a range from 8.51% to 37.64%. The early years reveal moderate returns around 14-16%, which decline sharply to below 10% in 2009 and 2010 in line with reduced net income. From 2011 onward, ROE improves significantly, peaking at 37.64% in 2016. Following this peak, ROE fluctuates but remains strong, staying above 27% in most years and reaching 36.41% in 2024. This indicates improved efficiency in generating profits from equity, particularly after 2010 despite fluctuations in net income and equity base.

Overall, the company demonstrates growth in net income and shareholders' equity over the period, with a marked recovery and stronger profitability metrics from 2011 onwards. The ROE trend highlights improved capital efficiency despite some interim volatility in earnings and equity values, suggesting effective management of financial resources and operational performance improvements over the long term.