Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Cintas Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
- Gross Profit Margin
- The gross profit margin demonstrates a consistent upward trend over the reported periods. Starting at 45.72% in August 2019, there is a gradual increase with minor fluctuations, culminating in a margin of 49.62% by November 2024. This indicates improving efficiency in production or cost control relative to revenue over time.
- Operating Profit Margin
- The operating profit margin shows a noticeable improvement throughout the duration. Beginning at 16.76% in August 2019, the margin experiences slight dips but generally advances steadily, reaching 22.34% by the end of the reporting period in November 2024. This suggests enhanced operational performance and effective management of operating expenses.
- Net Profit Margin
- The net profit margin exhibits a rising trajectory with some volatility. Initially recorded at 13.18% in August 2019, it fluctuates mildly in the early stages but moves upward consistently from mid-2021 onwards, peaking at 17.23% by November 2024. This reflects an overall strengthening in profitability after all expenses, taxes, and interest.
- Return on Equity (ROE)
- Return on equity shows a variable pattern with a dip during 2020, dropping from 30.26% in August 2019 to a low of 25.67% in August 2020. It then recovers sharply, reaching a high point of 40.75% in August 2024 before a slight decrease to 39.89% by November 2024. This recovery and increase highlight effective utilization of shareholders' equity to generate profits over time.
- Return on Assets (ROA)
- Return on assets maintains an upward movement, starting at 12.05% in August 2019 and increasing steadily through the periods, reaching 18.28% by November 2024. This indicates increasingly efficient use of assets to generate earnings, with consistent gains in asset productivity.
Return on Sales
Return on Investment
Gross Profit Margin
Cintas Corp., gross profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
1 Q2 2025 Calculation
Gross profit margin = 100
× (Gross marginQ2 2025
+ Gross marginQ1 2025
+ Gross marginQ4 2024
+ Gross marginQ3 2024)
÷ (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Revenue Trends
- Revenue experienced fluctuations with a notable decline from early 2020, reaching a low point near May 2020. Subsequently, it displayed a steady recovery and consistent growth through to late 2024. The revenue rose from approximately 1.81 billion US dollars in August 2019 up to about 2.56 billion US dollars by November 2024, marking a clear upward trajectory post the mid-2020 trough.
- Gross Margin Analysis
- The gross margin in absolute terms closely mirrors the revenue movements, with a decline in the first half of 2020 followed by sustained growth thereafter. The gross margin values rose from around 849 million US dollars in August 2019 to approximately 1.28 billion US dollars in November 2024. This indicates that gross profits have increased significantly over this period.
- Gross Profit Margin Percentage
- The gross profit margin percentage has trended upward consistently throughout the period. It moved from a starting point of about 45.72% in August 2019 to nearly 49.62% by November 2024. This rising margin percentage suggests improvements in cost efficiency or pricing power, enabling the company to retain a higher proportion of revenue as gross profit.
- Impact of Mid-2020
- Both revenue and gross margin experienced a dip around the period ending May 2020. This downturn is evident across all metrics, likely reflecting external challenges impacting the business environment during that time. However, the company showed resilience with a firm recovery and growth in subsequent quarters.
- Overall Financial Health Observations
- The data indicates positive progression in the company’s financial performance, with consistent revenue growth and improving gross profitability ratios post the mid-2020 decline. The upward trend in the gross profit margin percentage also supports a narrative of increasing operational efficiency or favorable market conditions, enhancing profitability.
Operating Profit Margin
Cintas Corp., operating profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
1 Q2 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2025
+ Operating incomeQ1 2025
+ Operating incomeQ4 2024
+ Operating incomeQ3 2024)
÷ (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Revenue Trends
- The revenue experienced fluctuations over the periods but showed an overall upward trend from August 2019 to November 2024. Starting at approximately $1.81 billion, revenue dipped notably in May 2020 to about $1.62 billion, likely reflecting a temporary decline. However, from that trough, revenue steadily increased, reaching approximately $2.56 billion by November 2024, representing significant growth over the five-year span.
- Operating Income Patterns
- Operating income demonstrated variability but generally increased over time. Beginning at $306 million in August 2019, there was a decrease to $207 million in May 2020, coinciding with the period of reduced revenue. Afterward, operating income recovered and showed consistent growth, peaking near $591 million in November 2024. This increase aligns with the rising revenue and suggests effective operational management.
- Operating Profit Margin Evolution
- The operating profit margin ranged from 16.41% to 22.34% across the periods, indicating improving profitability efficiency. A decline to the low 16% range occurred around May 2020, consistent with the revenue and income drops. Subsequently, the margin improved steadily, crossing the 20% mark by early 2022 and reaching above 22% by late 2024. This upward trajectory points to better cost control or enhanced pricing power over time.
- Overall Observations
- The data indicates a pronounced impact in mid-2020 across all financial measures, followed by a sustained recovery and growth phase. Revenue and operating income both rebounded strongly, with operating income growing proportionally faster, as reflected by the rising operating margins. The improving margin suggests increasing operational efficiency or favorable changes in cost structures. The company’s financial performance trends depict resilience and enhanced profitability capabilities over the reported time frame.
Net Profit Margin
Cintas Corp., net profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
1 Q2 2025 Calculation
Net profit margin = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
The financial data reveals several notable trends over the observed periods. Revenue exhibits a cyclical but overall upward movement, with a decline during the May 2020 period, likely indicative of an external disruption, followed by a consistent recovery and growth through to the latest reported period. This growth in revenue is steady and shows resilience after the initial drop.
Net income follows a somewhat similar pattern. It experiences a sharp decline during the May 2020 quarter but then recovers strongly in the subsequent quarters, surpassing previous highs in later periods. This recovery trend continues through the latest quarters, reaching record net income figures towards the end of the timeline.
The net profit margin demonstrates a generally increasing trend over the entire timeframe. Starting around 13%, it dips slightly in the early periods but then improves gradually, reaching above 17% in the most recent quarters. This consistent rise in net profit margin suggests improving operational efficiency or favorable cost management, contributing to higher profitability relative to revenue.
- Revenue
- Experienced a decline in May 2020 but generally increased in the subsequent quarters, indicating recovery and growth.
- Net Income
- Saw a notable drop in May 2020, followed by a sustained rebound that led to higher net income levels than before the decrease.
- Net Profit Margin
- Displayed an overall upward trajectory, moving from around 13% initially to over 17% in the latest periods, reflecting enhanced profitability.
Overall, the data suggests a robust financial recovery after a mid-2020 downturn, with strong growth in both revenue and net income, accompanied by improving profit margins. This reflects positively on the company’s capacity to manage costs and enhance profitability amid fluctuating market conditions.
Return on Equity (ROE)
Cintas Corp., ROE calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
1 Q2 2025 Calculation
ROE = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ Shareholders’ equity
= 100 × ( + + + )
÷ =
- Net Income Trends
- The net income exhibited significant fluctuations over the examined periods. Initially, net income showed a declining trend from 250,812 thousand US dollars in August 2019 to a low of 144,585 thousand in May 2020, coinciding with a likely period of economic challenge. Following this trough, net income progressively recovered, surpassing pre-decline levels by August 2020 with 300,005 thousand. From that point onward, net income generally trended upward, reaching a peak of 452,033 thousand in February 2024 before a slight decrease to 448,495 thousand in November 2024. This overall growth trajectory indicates strong recovery and expansion in profitability.
- Shareholders' Equity Patterns
- Shareholders’ equity displayed variable behavior throughout the timeline. It initially increased from 3,050,706 thousand US dollars in August 2019 to a peak of 3,826,510 thousand in February 2021. However, a decline followed, with equity dropping to 3,299,003 thousand in August 2021. Subsequently, the equity values fluctuated moderately but generally showed a rising trend, culminating in 4,293,106 thousand in November 2024. This increase suggests capital growth and accumulation of retained earnings over time, despite interim periods of decline.
- Return on Equity (ROE) Analysis
- ROE percentages indicated an overall robust and improving profitability relative to shareholders' equity. Beginning at 30.26% in August 2019, ROE slightly declined, reaching the lowest value of 25.67% in August 2020, concurrent with the net income trough. Thereafter, ROE increased consistently, peaking at 40.75% in February 2024, and stabilizing near 39.89% by November 2024. The rising ROE trend demonstrates enhanced efficiency in generating earnings from equity, reflecting effective use of shareholders’ funds.
- Interrelations and Insights
- There is a clear correlation between net income and ROE, both declining during the mid-2020 period and subsequently recovering strongly. Fluctuations in shareholders’ equity also influenced ROE, but the ratio's improvement despite periodic equity reductions suggests enhanced profitability and management efficiency. The data imply that the company successfully navigated challenging times, improving operational results and financial returns consistently across subsequent quarters.
Return on Assets (ROA)
Cintas Corp., ROA calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
1 Q2 2025 Calculation
ROA = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ Total assets
= 100 × ( + + + )
÷ =
The financial analysis over the examined periods reveals several notable trends in key metrics.
- Net income
- The net income exhibits fluctuations with an overall upward trajectory. It experienced a decline in the early periods, reaching a low point around May 31, 2020. Thereafter, net income demonstrated recovery and consistent growth, particularly from August 31, 2021, through to November 30, 2024, with occasional minor decreases. The highest recorded net income was in August 31, 2024, at 452,033 thousand US dollars, indicating a strengthening profitability trend.
- Total assets
- Total assets showed moderate variation across the periods. Initial periods experienced a slight decline around August 31, 2021, but a general upward trend ensued from May 31, 2022, onward. Despite some fluctuations, total assets grew from approximately 7,661,900 thousand US dollars in August 31, 2019 to 9,366,529 thousand US dollars by November 30, 2024. The overall increase reflects asset expansion, suggesting investment or accumulation over the analyzed timeframe.
- Return on Assets (ROA)
- Return on assets remained relatively stable with an upward trend. Starting at 12.05% in August 31, 2019, ROA dipped slightly during early 2020 but progressively increased, reaching 18.28% by November 30, 2024. This steady improvement indicates enhanced efficiency in utilizing assets to generate profits, aligning with the observed net income growth despite the increasing asset base.
Combining these observations, the company demonstrates improved profitability and operational efficiency over time, supported by asset growth and increasing returns relative to assets. The trends suggest effective management of resources and positive financial performance momentum in the latter periods.