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Cintas Corp (NAS:CTAS)
Net Margin
10.72% (As of Nov. 2014)

Net margin is calculated as net income divided by its revenue. Cintas Corp's net income for the three months ended in Nov. 2014 was $120 Mil. Cintas Corp's revenue for the three months ended in Nov. 2014 was $1,123 Mil. Therefore, Cintas Corp's net margin for the quarter that ended in Nov. 2014 was 10.72%.

CTAS' s 10-Year Net Margin Range
Min: 6   Max: 10.31
Current: 9.8

6
10.31
CTAS's Net Marginis ranked higher than
83% of the 968 Companies
in the Global Business Services industry.

( Industry Median: 4.08 vs. CTAS: 9.80 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Cintas Corp's Net Margin for the fiscal year that ended in May. 2014 is calculated as

Net Margin=Net Income (A: May. 2014 )/Revenue (A: May. 2014 )
=374.442/4551.812
=8.23 %

Cintas Corp's Net Margin for the quarter that ended in Nov. 2014 is calculated as

Net Margin=Net Income (Q: Nov. 2014 )/Revenue (Q: Nov. 2014 )
=120.412/1123.379
=10.72 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cintas Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
netmargin 9.549.509.028.526.006.086.487.267.318.23

Cintas Corp Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
netmargin 7.307.366.947.617.077.427.4910.999.9910.72
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