Analysis of Reportable Segments
Cintas Corp. operates in 2 segments: Uniform Rental and Facility Services and First Aid and Safety Services.
Segment Profit Margin
Cintas Corp., profit margin by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 22.23% | 21.44% | 21.74% | 21.55% | 17.80% | 17.59% |
| First Aid and Safety Services | 22.41% | 18.99% | 12.83% | 10.35% | 15.09% | 14.54% |
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).
The profit margins for both reportable segments exhibited an overall upward trajectory between May 31, 2019, and May 31, 2024, although the paths to growth differed significantly in terms of stability and volatility.
- Uniform Rental and Facility Services
- This segment demonstrated consistent margin expansion over the six-year period. Starting at 17.59% in 2019, profitability increased to 17.80% in 2020 before experiencing a significant acceleration to 21.55% in 2021. Margins remained resilient and stable thereafter, concluding the period at a peak of 22.23% in 2024.
- First Aid and Safety Services
- Profitability in this segment was characterized by higher volatility. After reaching 15.09% in 2020, margins contracted sharply to a period low of 10.35% in 2021. A robust recovery followed, with margins increasing sequentially to 12.83% in 2022 and 18.99% in 2023, eventually reaching 22.41% by May 31, 2024.
- Comparative Margin Dynamics
- A convergence in profitability is observed between the two segments. While Uniform Rental and Facility Services maintained a lead in margin percentage for the majority of the analyzed timeframe, the aggressive growth in the First Aid and Safety Services segment resulted in it surpassing the Uniform Rental and Facility Services margin by May 31, 2024.
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Segment Profit Margin: Uniform Rental and Facility Services
Cintas Corp.; Uniform Rental and Facility Services; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | 1,659,501) | 1,478,757) | 1,353,490) | 1,225,840) | 1,004,558) | 976,710) |
| Revenue | 7,465,199) | 6,897,130) | 6,226,980) | 5,689,632) | 5,643,494) | 5,552,430) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 22.23% | 21.44% | 21.74% | 21.55% | 17.80% | 17.59% |
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).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 1,659,501 ÷ 7,465,199 = 22.23%
The Uniform Rental and Facility Services segment has demonstrated a consistent upward trajectory in both profitability and scale over the six-year period ending May 31, 2024. Both revenue and operating income grew steadily, with a notable acceleration in margin efficiency starting in 2021.
- Revenue Growth
- Total revenue increased from 5.55 billion US dollars in 2019 to 7.47 billion US dollars in 2024. While growth was relatively modest between 2019 and 2021, a more pronounced acceleration occurred from 2022 onward, indicating an expansion of the segment's market reach or pricing power.
- Operating Income Expansion
- Operating income exhibited uninterrupted annual growth, rising from 976.7 million US dollars in 2019 to 1.66 billion US dollars in 2024. The growth in operating income outpaced the growth in revenue, suggesting improved operational leverage and cost management within the segment.
- Segment Profit Margin Analysis
- The segment profit margin expanded from 17.59% in 2019 to 22.23% in 2024. A significant shift is observed between 2020 and 2021, where the margin increased by 375 basis points, jumping from 17.80% to 21.55%. Following this spike, the margin remained stable above 21%, experiencing a slight contraction in 2023 before reaching a period high of 22.23% in 2024.
The convergence of rising revenues and expanding margins indicates that the segment has successfully scaled its operations while enhancing its internal efficiency. The ability to maintain and grow margins above 21% since 2021 suggests a sustainable shift in the segment's cost structure or a strategic increase in high-margin service offerings.
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Segment Profit Margin: First Aid and Safety Services
Cintas Corp.; First Aid and Safety Services; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | 239,153) | 180,690) | 106,763) | 81,183) | 106,892) | 90,084) |
| Revenue | 1,067,334) | 951,496) | 832,458) | 784,291) | 708,569) | 619,470) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 22.41% | 18.99% | 12.83% | 10.35% | 15.09% | 14.54% |
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).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 239,153 ÷ 1,067,334 = 22.41%
The First Aid and Safety Services segment has demonstrated a consistent upward trajectory in scale and a significant expansion in operational efficiency between fiscal years 2019 and 2024.
- Revenue Performance
- Revenue exhibited uninterrupted annual growth throughout the analyzed period. Starting at US$ 619,470 thousand in 2019, the segment reached a milestone of US$ 1,067,334 thousand by May 31, 2024. This represents a steady increase in top-line performance over the six-year duration.
- Operating Income Trends
- Operating income experienced a period of volatility between 2020 and 2022, with a notable decline to US$ 81,183 thousand in 2021. Following this contraction, a phase of aggressive growth occurred, with operating income rising sharply to US$ 180,690 thousand in 2023 and further increasing to US$ 239,153 thousand in 2024.
- Segment Profit Margin Analysis
- The segment profit margin followed a U-shaped recovery and subsequent expansion pattern. After an initial peak of 15.09% in 2020, the margin contracted to its lowest point of 10.35% in 2021, despite the increase in revenue during that same year. This suggests a temporary increase in the cost of goods sold or operating expenses. However, a strong recovery trend ensued, with margins expanding significantly to 18.99% in 2023 and reaching a period high of 22.41% by May 31, 2024.
The correlation between the rapid increase in operating income and the expansion of the profit margin from 2022 to 2024 indicates a successful scaling of operations where revenue growth has significantly outpaced the growth of operating expenses.
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Segment Return on Assets (Segment ROA)
Cintas Corp., ROA by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 22.12% | 20.61% | 19.39% | 18.18% | 15.38% | 15.16% |
| First Aid and Safety Services | 32.76% | 25.69% | 16.08% | 12.73% | 17.49% | 17.84% |
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).
The analysis of segment return on assets reveals a positive growth trajectory across both reportable segments between May 2019 and May 2024, although the patterns of expansion differ significantly between the two business lines.
- Uniform Rental and Facility Services
- A consistent and linear upward trend is observed in this segment. The return on assets increased steadily from 15.16% in 2019 to 22.12% in 2024. This uninterrupted growth suggests a stable and progressive improvement in asset utilization and operational efficiency over the six-year period.
- First Aid and Safety Services
- This segment exhibited initial volatility followed by a period of rapid acceleration. A decline occurred between 2019 and 2021, with the return on assets dropping from 17.84% to a period low of 12.73%. However, a strong recovery began in 2022, leading to an aggressive surge in returns that peaked at 32.76% by May 2024.
- Comparative Segment Performance
- While the Uniform Rental and Facility Services segment provided predictable and steady gains, the First Aid and Safety Services segment achieved a higher overall increase in efficiency relative to its asset base. By the end of the period in 2024, the First Aid and Safety Services segment significantly outperformed the Uniform Rental and Facility Services segment, creating a performance gap of 10.64 percentage points.
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Segment ROA: Uniform Rental and Facility Services
Cintas Corp.; Uniform Rental and Facility Services; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | 1,659,501) | 1,478,757) | 1,353,490) | 1,225,840) | 1,004,558) | 976,710) |
| Total assets | 7,503,043) | 7,176,257) | 6,979,731) | 6,743,272) | 6,531,673) | 6,442,461) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 22.12% | 20.61% | 19.39% | 18.18% | 15.38% | 15.16% |
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).
1 2024 Calculation
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 1,659,501 ÷ 7,503,043 = 22.12%
The Uniform Rental and Facility Services segment has demonstrated a consistent and accelerating improvement in operational efficiency and profitability over the six-year period ending May 31, 2024. This performance is characterized by a steady expansion of the asset base coupled with a more rapid growth in operating income, resulting in a sustained increase in the Return on Assets (ROA).
- Operating Income Growth
- Operating income exhibited a continuous upward trend, rising from 976,710 thousand US dollars in 2019 to 1,659,501 thousand US dollars in 2024. The most significant acceleration in growth occurred between 2020 and 2021, where income increased by approximately 21.8%, establishing a trajectory of strong annual gains that continued through the end of the period.
- Asset Base Expansion
- Total assets grew at a measured and steady pace, increasing from 6,442,461 thousand US dollars in 2019 to 7,503,043 thousand US dollars in 2024. The growth in assets remained relatively linear, suggesting a disciplined approach to capital investment and resource expansion to support the growing income stream.
- Segment ROA Analysis
- The segment ROA improved every year, ascending from 15.16% in 2019 to 22.12% in 2024. This upward trend indicates that the segment is generating progressively more income for every dollar of assets employed. The leap from 15.38% in 2020 to 18.18% in 2021 reflects a notable shift in asset productivity, which was further enhanced in subsequent years to reach a peak of 22.12% by May 31, 2024.
In summary, the divergence between the gradual growth of total assets and the aggressive growth of operating income has driven a significant enhancement in the segment's return on assets. The data indicates a strong improvement in operational leverage and asset utilization efficiency over the analyzed period.
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Segment ROA: First Aid and Safety Services
Cintas Corp.; First Aid and Safety Services; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | 239,153) | 180,690) | 106,763) | 81,183) | 106,892) | 90,084) |
| Total assets | 730,003) | 703,226) | 664,040) | 637,663) | 611,205) | 504,920) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 32.76% | 25.69% | 16.08% | 12.73% | 17.49% | 17.84% |
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).
1 2024 Calculation
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 239,153 ÷ 730,003 = 32.76%
The First Aid and Safety Services segment has demonstrated a significant trajectory of growth in profitability and asset efficiency over the six-year period ending May 31, 2024. While the segment experienced a temporary contraction in 2021, the subsequent recovery has been characterized by an exponential increase in operating income that has substantially outpaced the growth of the asset base.
- Operating Income Performance
- Operating income grew from 90,084 thousand USD in 2019 to 239,153 thousand USD in 2024. A notable decline was recorded in 2021, with income falling to 81,183 thousand USD. Following this trough, the segment experienced aggressive growth, with operating income increasing by approximately 69% between 2022 and 2023, and further accelerating to reach its peak in 2024.
- Asset Base Expansion
- Total assets exhibited a steady and linear upward trend, increasing from 504,920 thousand USD in 2019 to 730,003 thousand USD in 2024. This consistent growth indicates a planned expansion of the segment's resource base, which remained stable even during the period of operating income volatility in 2021.
- Segment Return on Assets (ROA) Dynamics
- The Segment ROA shifted from a period of relative stability and slight decline to one of rapid acceleration. After falling from 17.84% in 2019 to a low of 12.73% in 2021, the ROA climbed sharply to 25.69% in 2023 and 32.76% in 2024. The divergence between the linear growth of assets and the exponential growth of operating income suggests a significant increase in operational efficiency and a higher rate of return on each dollar of assets deployed.
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Segment Asset Turnover
Cintas Corp., asset turnover by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 0.99 | 0.96 | 0.89 | 0.84 | 0.86 | 0.86 |
| First Aid and Safety Services | 1.46 | 1.35 | 1.25 | 1.23 | 1.16 | 1.23 |
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).
An analysis of segment asset turnover reveals a general trend of increasing operational efficiency across both reportable segments from May 31, 2019, through May 31, 2024. While both segments experienced brief periods of volatility between 2020 and 2021, the latter half of the period is characterized by sustained growth in the ability to generate revenue from assets.
- Uniform Rental and Facility Services
- The asset turnover ratio for this segment remained stable at 0.86 through May 31, 2020, before experiencing a slight decline to 0.84 in 2021. Subsequently, a consistent upward trajectory was observed, with the ratio climbing to 0.89 in 2022, 0.96 in 2023, and reaching a peak of 0.99 by May 31, 2024. This progression indicates a strengthening of asset utilization and an improved capacity to derive sales from the segment's asset base.
- First Aid and Safety Services
- This segment maintained a higher turnover ratio relative to Uniform Rental and Facility Services throughout the entire period. After a dip to 1.16 in 2020, the ratio recovered to 1.23 in 2021 and entered a period of accelerated growth. The ratio increased to 1.25 in 2022, 1.35 in 2023, and concluded at 1.46 in 2024. The steady increase suggests significant improvements in capital efficiency and revenue generation per unit of asset.
- Comparative Segment Performance
- First Aid and Safety Services consistently outperformed Uniform Rental and Facility Services in terms of asset turnover, maintaining a lead of approximately 0.37 to 0.47 points throughout the analyzed timeframe. Both segments exhibited synchronized recovery and growth patterns starting in 2022, suggesting a systemic improvement in operational leverage across the organization's reportable segments.
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Segment Asset Turnover: Uniform Rental and Facility Services
Cintas Corp.; Uniform Rental and Facility Services; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 7,465,199) | 6,897,130) | 6,226,980) | 5,689,632) | 5,643,494) | 5,552,430) |
| Total assets | 7,503,043) | 7,176,257) | 6,979,731) | 6,743,272) | 6,531,673) | 6,442,461) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.99 | 0.96 | 0.89 | 0.84 | 0.86 | 0.86 |
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).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 7,465,199 ÷ 7,503,043 = 0.99
The Uniform Rental and Facility Services segment exhibits a consistent improvement in operational efficiency and revenue generation relative to its asset base over the period from May 31, 2019, to May 31, 2024. A positive correlation is observed between accelerating revenue growth and an increasing asset turnover ratio, particularly from 2022 onward.
- Revenue Performance
- Revenue experienced a steady upward trajectory, increasing from $5,552,430 thousand in 2019 to $7,465,199 thousand in 2024. Growth remained relatively flat between 2019 and 2021, followed by a period of significant acceleration between 2022 and 2024.
- Asset Base Expansion
- Total assets grew at a more moderate pace compared to revenue, rising from $6,442,461 thousand in 2019 to $7,503,043 thousand in 2024. The gradual nature of this increase suggests a controlled expansion of the resource base to support higher sales volumes.
- Asset Turnover Efficiency
- The segment asset turnover ratio remained stable at 0.86 in 2019 and 2020, followed by a slight contraction to 0.84 in 2021. Subsequently, a strong recovery and growth trend emerged, with the ratio climbing to 0.89 in 2022, 0.96 in 2023, and reaching a peak of 0.99 in 2024. This trend indicates that the segment is generating more revenue for every dollar of assets employed, reflecting enhanced capital productivity.
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Segment Asset Turnover: First Aid and Safety Services
Cintas Corp.; First Aid and Safety Services; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 1,067,334) | 951,496) | 832,458) | 784,291) | 708,569) | 619,470) |
| Total assets | 730,003) | 703,226) | 664,040) | 637,663) | 611,205) | 504,920) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.46 | 1.35 | 1.25 | 1.23 | 1.16 | 1.23 |
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).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 1,067,334 ÷ 730,003 = 1.46
The First Aid and Safety Services segment demonstrates a consistent upward trajectory in both scale and operational efficiency between fiscal years 2019 and 2024. A sustained increase in revenue, paired with a more controlled growth rate in total assets, has resulted in a significant improvement in the segment's ability to generate sales from its asset base.
- Revenue Growth Trends
- Revenue grew steadily from 619,470 thousand US dollars in 2019 to 1,067,334 thousand US dollars in 2024. This represents a total increase of approximately 72% over the period, with the segment surpassing the 1 billion US dollar threshold by the end of the 2024 fiscal year.
- Asset Base Expansion
- Total assets increased from 504,920 thousand US dollars in 2019 to 730,003 thousand US dollars in 2024. While the asset base grew consistently, the pace of expansion slowed relative to revenue growth, particularly after 2020, suggesting an optimization of the resource base.
- Segment Asset Turnover Performance
- The asset turnover ratio exhibited a brief decline from 1.23 in 2019 to 1.16 in 2020, coinciding with a sharp increase in assets. However, a strong recovery and subsequent acceleration followed, with the ratio climbing to 1.46 by 2024. This upward trend indicates increasing efficiency in utilizing assets to drive revenue, reflecting improved operational productivity within the segment.
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Segment Capital Expenditures to Depreciation
Cintas Corp., capital expenditures to depreciation by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 0.77 | 0.70 | 0.51 | 0.32 | 0.58 | 0.73 |
| First Aid and Safety Services | 1.23 | 1.23 | 1.23 | 0.79 | 0.93 | 1.00 |
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).
Analysis of the segment capital expenditures to depreciation ratios reveals divergent investment strategies between the Uniform Rental and Facility Services segment and the First Aid and Safety Services segment over the six-year period ending May 31, 2024.
- Uniform Rental and Facility Services
- A cyclical pattern is observed in this segment, characterized by a significant contraction in investment followed by a steady recovery. The ratio declined from 0.73 in 2019 to a trough of 0.32 in 2021, suggesting a phase where capital spending was significantly lower than the depreciation of existing assets. From 2022 onward, a consistent upward trajectory is evident, with the ratio climbing to 0.51 in 2022, 0.70 in 2023, and 0.77 in 2024, indicating a return toward historical investment levels.
- First Aid and Safety Services
- This segment demonstrates a transition from maintenance-level spending to an expansionary posture. Following a slight decrease from 1.00 in 2019 to 0.79 in 2021, the ratio experienced a sharp increase to 1.23 in 2022. This figure has remained constant through 2023 and 2024, signifying a sustained period where capital expenditures consistently exceed annual depreciation, which is typically indicative of growth-oriented capital investment.
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Segment Capital Expenditures to Depreciation: Uniform Rental and Facility Services
Cintas Corp.; Uniform Rental and Facility Services; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Capital expenditures | 261,225) | 227,436) | 166,559) | 104,020) | 183,364) | 220,373) |
| Depreciation and amortization | 340,426) | 326,185) | 329,473) | 323,596) | 317,699) | 301,328) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.77 | 0.70 | 0.51 | 0.32 | 0.58 | 0.73 |
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).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 261,225 ÷ 340,426 = 0.77
The Uniform Rental and Facility Services segment experienced a distinct cycle of capital investment between 2019 and 2024, characterized by a significant mid-period contraction followed by a robust recovery in spending.
- Capital Expenditure Trends
- Investment levels exhibited significant volatility, declining from US$ 220.4 million in 2019 to a low of US$ 104.0 million in 2021. Following this trough, a consistent upward trajectory was observed, with expenditures increasing annually to reach a period peak of US$ 261.2 million by May 31, 2024.
- Depreciation and Amortization Stability
- In contrast to the volatility of capital expenditures, depreciation and amortization remained relatively stable and grew incrementally. Expenses rose from US$ 301.3 million in 2019 to US$ 340.4 million in 2024, indicating a steady baseline of asset consumption regardless of fluctuations in new procurement.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio mirrored the V-shaped trend of capital spending, falling from 0.73 in 2019 to a minimum of 0.32 in 2021 before recovering to 0.77 by 2024. Because the ratio remained consistently below 1.0 throughout the six-year period, capital investments were perpetually lower than the amount of capital being depreciated. However, the climb from 2021 to 2024 signals a strategic shift toward more aggressive asset replacement and expansion.
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Segment Capital Expenditures to Depreciation: First Aid and Safety Services
Cintas Corp.; First Aid and Safety Services; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Capital expenditures | 100,025) | 76,549) | 59,656) | 34,384) | 35,678) | 36,783) |
| Depreciation and amortization | 81,342) | 62,059) | 48,656) | 43,314) | 38,516) | 36,824) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.23 | 1.23 | 1.23 | 0.79 | 0.93 | 1.00 |
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).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 100,025 ÷ 81,342 = 1.23
The First Aid and Safety Services segment experienced a substantial escalation in both capital investment and asset depreciation over the six-year period ending May 31, 2024. While the segment began the period with a balanced investment-to-depreciation profile, it transitioned through a phase of relative consolidation before entering a sustained period of aggressive capital expansion.
- Capital Expenditure Trajectory
- Capital expenditures grew from US$ 36.78 million in 2019 to US$ 100.03 million in 2024. A period of slight decline occurred between 2019 and 2021, reaching a low of US$ 34.38 million. This was followed by a sharp acceleration from 2022 onward, with expenditures nearly tripling from the 2021 trough to the 2024 peak.
- Depreciation and Amortization Trends
- Depreciation and amortization expenses exhibited a consistent upward trend, increasing from US$ 36.82 million in 2019 to US$ 81.34 million in 2024. This steady climb reflects the expanding scale of the segment's depreciable asset base resulting from cumulative historical investments.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation shifted from 1.00 in 2019 to a minimum of 0.79 in 2021, indicating that for a brief period, the segment's investment in new assets was insufficient to cover the depreciation of existing ones. Starting in 2022, the ratio rose sharply and remained constant at 1.23 through 2024. This stability at a level above 1.00 demonstrates a strategic pivot toward growth and asset modernization, where new capital deployment consistently exceeds the rate of asset consumption.
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Revenue
Cintas Corp., revenue by reportable segment
US$ in thousands
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 7,465,199) | 6,897,130) | 6,226,980) | 5,689,632) | 5,643,494) | 5,552,430) |
| First Aid and Safety Services | 1,067,334) | 951,496) | 832,458) | 784,291) | 708,569) | 619,470) |
| All Other | 1,064,082) | 967,143) | 795,021) | 642,417) | 733,057) | 720,403) |
| Total | 9,596,615) | 8,815,769) | 7,854,459) | 7,116,340) | 7,085,120) | 6,892,303) |
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).
Total revenue has demonstrated consistent growth over the six-year period ending May 31, 2024, increasing from US$ 6.89 billion to US$ 9.60 billion. While growth was relatively modest between 2019 and 2021, there was a marked acceleration in revenue expansion starting in 2022, with total annual increases exceeding US$ 600 million in each of the three most recent fiscal years.
- Uniform Rental and Facility Services
- This segment remains the primary driver of total revenue, accounting for the vast majority of the company's financial intake. Revenue increased from US$ 5.55 billion in 2019 to US$ 7.47 billion in 2024. A period of stability occurred between 2019 and 2021, followed by a significant growth phase from 2022 through 2024, where annual revenue gains were consistently substantial.
- First Aid and Safety Services
- Steady and uninterrupted growth is observed in this segment, with revenue rising from US$ 619.5 million in 2019 to US$ 1.07 billion in 2024. This segment achieved a notable milestone by surpassing the US$ 1 billion threshold in the 2024 fiscal year. The growth rate has remained resilient, showing strong year-over-year increases throughout the entire reporting period.
- All Other Segment
- This category exhibited the most volatility of the three segments. After a slight increase in 2020, revenue declined to US$ 642.4 million in 2021. However, a sharp recovery followed, with revenue growing rapidly to US$ 1.06 billion by 2024. The recovery period between 2021 and 2023 was characterized by aggressive growth, with revenue increasing by approximately 23.8% and 21.6% in those respective years.
- Aggregate Revenue Trends
- The overall revenue composition indicates a diversifying growth pattern. While the Uniform Rental and Facility Services segment continues to dominate the revenue mix, the proportional contributions from First Aid and Safety Services and All Other segments have increased. The transition from a US$ 7.12 billion total in 2021 to US$ 9.60 billion in 2024 suggests a strong post-2021 expansion across all business lines.
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Operating income
Cintas Corp., operating income by reportable segment
US$ in thousands
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 1,659,501) | 1,478,757) | 1,353,490) | 1,225,840) | 1,004,558) | 976,710) |
| First Aid and Safety Services | 239,153) | 180,690) | 106,763) | 81,183) | 106,892) | 90,084) |
| All Other | 169,979) | 143,217) | 127,117) | 78,469) | 51,246) | 66,740) |
| Total | 2,068,633) | 1,802,664) | 1,587,370) | 1,385,492) | 1,162,696) | 1,133,534) |
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).
Total operating income exhibits a strong upward trajectory, increasing from $1.13 billion in 2019 to approximately $2.07 billion by 2024. This overall growth indicates a positive performance trend across all reportable segments, with the aggregate operating income nearly doubling over the six-year period.
- Uniform Rental and Facility Services
- This segment serves as the primary driver of total operating income, maintaining a consistent and steady growth pattern. Operating income rose from $976.7 million in 2019 to $1.66 billion in 2024, reflecting sustained expansion and stability within the core business operations.
- First Aid and Safety Services
- A period of volatility is observed between 2020 and 2021, characterized by a decline in operating income to $81.2 million in 2021. However, this was followed by a period of rapid acceleration, with income surging to $239.2 million by 2024, marking the most significant percentage growth of any segment in the latter half of the period.
- All Other
- After a contraction in 2020, this segment demonstrated a robust recovery. Operating income increased from a low of $51.2 million in 2020 to $170 million in 2024, indicating a successful scale-up of diversified service offerings.
- Aggregate Operating Performance
- The total operating income grew steadily from 2019 to 2020, followed by more aggressive year-over-year increases starting in 2021. The shift from $1.13 billion in 2019 to $2.07 billion in 2024 suggests strong operational leverage and the successful scaling of both core and ancillary service lines.
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Depreciation and amortization
Cintas Corp., depreciation and amortization by reportable segment
US$ in thousands
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 340,426) | 326,185) | 329,473) | 323,596) | 317,699) | 301,328) |
| First Aid and Safety Services | 81,342) | 62,059) | 48,656) | 43,314) | 38,516) | 36,824) |
| All Other | 20,616) | 20,918) | 21,572) | 21,041) | 22,838) | 21,941) |
| Total | 442,384) | 409,162) | 399,701) | 387,951) | 379,053) | 360,093) |
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).
Total depreciation and amortization expenses exhibited a consistent upward trajectory from May 31, 2019, through May 31, 2024, increasing from $360.1 million to $442.4 million. This overall growth indicates a steady expansion of the company's capital asset base across its reportable segments.
- Uniform Rental and Facility Services
- This segment serves as the primary driver of depreciation and amortization costs, maintaining a dominant share of the total expenditure. Expenses rose from $301.3 million in 2019 to $340.4 million in 2024. The growth remained stable throughout the period, with the exception of a marginal decline observed in 2023, followed by a recovery in 2024.
- First Aid and Safety Services
- The most significant growth trend is observed within this segment, where expenses more than doubled over the six-year period, rising from $36.8 million in 2019 to $81.3 million in 2024. A marked acceleration in costs occurred between 2022 and 2024, suggesting a period of intensified capital investment in equipment or infrastructure specific to safety services.
- All Other Segments
- Expenditures in this category remained relatively stagnant and showed a slight downward trend after 2020. Costs peaked at $22.8 million in 2020 before gradually declining to $20.6 million by 2024, indicating limited new capital deployment in these areas.
The divergence in growth rates between segments suggests a strategic reallocation of capital. While the Uniform Rental and Facility Services segment continues to provide the baseline for the company's asset depreciation, the rapid escalation in the First Aid and Safety Services segment indicates it is becoming a more significant component of the overall asset structure.
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Capital expenditures
Cintas Corp., capital expenditures by reportable segment
US$ in thousands
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 261,225) | 227,436) | 166,559) | 104,020) | 183,364) | 220,373) |
| First Aid and Safety Services | 100,025) | 76,549) | 59,656) | 34,384) | 35,678) | 36,783) |
| All Other | 48,219) | 27,124) | 14,457) | 5,066) | 11,247) | 19,563) |
| Total | 409,469) | 331,109) | 240,672) | 143,470) | 230,289) | 276,719) |
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).
Total capital expenditures exhibit a V-shaped trajectory over the six-year period, characterized by a significant contraction reaching a trough in 2021, followed by a period of accelerated investment that culminated in a peak in 2024. Aggregate spending decreased from US$ 276.7 million in 2019 to a low of US$ 143.5 million in 2021, before expanding rapidly to US$ 409.5 million by May 31, 2024.
- Uniform Rental and Facility Services
- This segment remains the primary driver of capital allocation. Expenditures declined from US$ 220.4 million in 2019 to US$ 104.0 million in 2021, representing a reduction of approximately 53%. However, a strong recovery ensued, with spending increasing annually to reach US$ 261.2 million in 2024, surpassing pre-pandemic levels.
- First Aid and Safety Services
- Spending in this segment remained relatively stable between 2019 and 2021, fluctuating minimally around US$ 34 million to US$ 36 million. Beginning in 2022, a sharp upward trend emerged, with expenditures rising to US$ 59.7 million and continuing to climb to US$ 100.0 million by 2024, indicating a strategic shift toward increased capacity or infrastructure investment in this business line.
- All Other Segments
- Capital expenditures for other activities showed the highest relative volatility. After a steep decline from US$ 19.6 million in 2019 to a minimum of US$ 5.1 million in 2021, the segment experienced exponential growth, reaching US$ 48.2 million in 2024. This represents nearly a tenfold increase from the 2021 low.
- Comparative Growth Analysis
- The period from 2021 to 2024 is marked by an aggressive capital investment phase across all reportable segments. While Uniform Rental and Facility Services maintains the largest absolute share of spending, the First Aid and Safety Services and All Other segments demonstrated higher proportional growth rates during the recovery phase, suggesting a diversification of capital deployment.
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Total assets
Cintas Corp., total assets by reportable segment
US$ in thousands
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Uniform Rental and Facility Services | 7,503,043) | 7,176,257) | 6,979,731) | 6,743,272) | 6,531,673) | 6,442,461) |
| First Aid and Safety Services | 730,003) | 703,226) | 664,040) | 637,663) | 611,205) | 504,920) |
| All Other | 593,756) | 542,724) | 413,014) | 362,248) | 381,605) | 392,636) |
| Corporate | 342,015) | 124,149) | 90,471) | 493,640) | 145,402) | 96,645) |
| Total | 9,168,817) | 8,546,356) | 8,147,256) | 8,236,823) | 7,669,885) | 7,436,662) |
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).
Total assets exhibit a consistent upward trajectory over the observed six-year period, increasing from 7.44 billion US dollars in 2019 to approximately 9.17 billion US dollars in 2024. While the growth was relatively steady, a slight contraction occurred in 2022 before a renewed acceleration in the subsequent two fiscal years.
- Uniform Rental and Facility Services
- As the primary driver of the asset base, this segment demonstrated linear growth every year, rising from 6.44 billion US dollars in 2019 to 7.50 billion US dollars in 2024. The steady nature of this increase suggests a disciplined expansion of core operational capacity.
- First Aid and Safety Services
- A consistent growth pattern is evident in this segment, with assets expanding from 504.9 million US dollars in 2019 to 730.0 million US dollars in 2024. The lack of volatility in this trend indicates a stable and progressive scaling of the service line.
- All Other Segments
- This category experienced a period of slight contraction between 2019 and 2021, falling from 392.6 million US dollars to 362.2 million US dollars. However, a significant reversal occurred starting in 2022, with assets accelerating to 593.8 million US dollars by 2024.
- Corporate Assets
- Corporate-level assets exhibited high volatility compared to operational segments. A substantial peak occurred in 2021 at 493.6 million US dollars, followed by a sharp decline to 90.5 million US dollars in 2022, and a subsequent increase to 342.0 million US dollars by 2024. This irregularity suggests fluctuations related to corporate financing, internal reallocations, or non-operational asset movements.
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