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Cintas (MEX:CTAS) Return-on-Tangible-Equity : 236.88% (As of Feb. 2025)


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What is Cintas Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cintas's annualized net income for the quarter that ended in Feb. 2025 was MXN38,054 Mil. Cintas's average shareholder tangible equity for the quarter that ended in Feb. 2025 was MXN16,065 Mil. Therefore, Cintas's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 was 236.88%.

The historical rank and industry rank for Cintas's Return-on-Tangible-Equity or its related term are showing as below:

MEX:CTAS' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 55.06   Med: 523.21   Max: 1030.16
Current: 252.29

During the past 13 years, Cintas's highest Return-on-Tangible-Equity was 1,030.16%. The lowest was 55.06%. And the median was 523.21%.

MEX:CTAS's Return-on-Tangible-Equity is ranked better than
88.25% of 987 companies
in the Business Services industry
Industry Median: 11.86 vs MEX:CTAS: 252.29

Cintas Return-on-Tangible-Equity Historical Data

The historical data trend for Cintas's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Cintas Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity 822.08 1,010.56 839.78 248.72

Cintas Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 256.42 225.41 311.63 321.04 236.88

Competitive Comparison of Cintas's Return-on-Tangible-Equity

For the Specialty Business Services subindustry, Cintas's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Cintas's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Cintas's Return-on-Tangible-Equity falls into.


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Cintas Return-on-Tangible-Equity Calculation

Cintas's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=26707.634/( (8185.942+13290.09 )/ 2 )
=26707.634/10738.016
=248.72 %

Cintas's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2025 )  (Q: Nov. 2024 )(Q: Feb. 2025 )
=38053.844/( (13177.354+18952.313)/ 2 )
=38053.844/16064.8335
=236.88 %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Cintas  (MEX:CTAS) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Cintas Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Cintas's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Cintas Business Description

Address
6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, OH, USA, 45262-5737
Cintas has roots tracing back to 1929, during which the Farmer family cleaned and re-sold dirty rags to manufacturing plants in Ohio. The firm has grown its business organically and through acquisitions, and today Cintas acts as a one-stop outsourcing partner for businesses. Cintas will design, manufacture, collect, and clean every employee uniform for a small weekly sum, taking on the upfront capital expense itself. In the same stop, Cintas can also replace soiled or depleted mats, mops, trash liners, towels, first aid, fire, and cleaning products. Businesses value an outsourcing partner like Cintas as it simplifies operations and leaves noncore tasks with high regulatory standards in the hands of professionals.