ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cintas's annualizedNet Income for the quarter that ended in Feb. 2024 was $1,590 Mil.
Cintas's average Total Assets over the quarter that ended in Feb. 2024 was $8,896 Mil. Therefore, Cintas's annualized ROA % for the quarter that ended in Feb. 2024 was 17.88%.
The historical rank and industry rank for Cintas's ROA % or its related term are showing as below:
CTAS'
s ROA % Range Over the Past 10 Years
Min: 8.5 Med: 12.26 Max: 17.27
Current: 17.27
During the past 13 years, Cintas's highest ROA % was 17.27%. The lowest was 8.50%. And the median was 12.26%.
CTAS's ROA % is ranked better than 94.19% of 1085
companies
in the Business Services industry
Industry Median: 3.58
vs CTAS: 17.27
Cintas ROA % Historical Data
The historical data trend for Cintas's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Cintas Annual Data
Trend
May14
May15
May16
May17
May18
May19
May20
May21
May22
May23
ROA %
12.30
11.60
13.97
15.08
16.15
Cintas Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
ROA %
15.43
16.28
17.84
17.09
17.88
Competitive Comparison
For the Specialty Business Services subindustry, Cintas's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cintas ROA % Distribution
For the Business Services industry and Industrials sector, Cintas's ROA % distribution charts can be found below:
* The bar in red indicates where Cintas's ROA % falls into.
Cintas ROA % Calculation
Cintas's annualized ROA % for the fiscal year that ended in May. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Cintas (NAS:CTAS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Feb. 2024) net income data. The Revenue data used here is four times the quarterly (Feb. 2024) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Cintas ROA % Related Terms
Thank you for viewing the detailed overview of Cintas's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products generally include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.
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