Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Cintas's 5-Year RORE % for the quarter that ended in Nov. 2024 was 19.03%.
The industry rank for Cintas's 5-Year RORE % or its related term are showing as below:
CTAS's 5-Year RORE % is ranked better than 64.35% of 836
companies
in the Business Services industry
Industry Median: 6.665
vs CTAS: 19.03
Cintas 5-Year RORE % Historical Data
The historical data trend for Cintas's 5-Year RORE % 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.
For the Specialty Business Services subindustry, Cintas's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Cintas's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Cintas's 5-Year RORE % falls into.
Cintas 5-Year RORE % Calculation
Cintas's 5-Year RORE % for the quarter that ended in Nov. 2024 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Nov. 2024 and 5-year before.
Cintas (NAS:CTAS) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Cintas 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of Cintas's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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