Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Cintas Corp., balance sheet: goodwill and intangible assets

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Goodwill	3,212,424)	3,056,201)	3,042,976)	2,913,069)	2,870,020)	2,842,441)
Service contracts	1,033,762)	1,004,754)	1,001,311)	961,942)	941,383)	928,635)
Capitalized contract costs	777,535)	665,705)	551,582)	459,079)	375,912)	277,016)
Noncompete and consulting agreements and other	233,334)	198,260)	176,578)	150,054)	98,129)	92,614)
Service contracts and other assets, carrying amount	2,044,631)	1,868,719)	1,729,471)	1,571,075)	1,415,424)	1,298,265)
Accumulated amortization	(1,297,778)	(1,139,154)	(993,723)	(852,216)	(703,137)	(563,355)
Service contracts and other assets, net	746,853)	729,565)	735,748)	718,859)	712,287)	734,910)
Goodwill, service contracts and other assets	3,959,277)	3,785,766)	3,778,724)	3,631,928)	3,582,307)	3,577,351)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Cintas Corp. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Service contracts and other assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Cintas Corp. service contracts and other assets, net decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill, service contracts and other assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Cintas Corp. goodwill, service contracts and other assets increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., adjustments to financial statements

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Adjustment to Total Assets
Total assets (as reported)	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Less: Goodwill	3,212,424)	3,056,201)	3,042,976)	2,913,069)	2,870,020)	2,842,441)
Total assets (adjusted)	5,956,393)	5,490,155)	5,104,280)	5,323,754)	4,799,865)	4,594,221)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Less: Goodwill	3,212,424)	3,056,201)	3,042,976)	2,913,069)	2,870,020)	2,842,441)
Shareholders’ equity (adjusted)	1,103,948)	807,785)	265,220)	774,778)	365,182)	160,280)

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).

Cintas Corp., Financial Data: Reported vs. Adjusted

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Cintas Corp., adjusted financial ratios

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Total Asset Turnover
Reported total asset turnover	1.05	1.03	0.96	0.86	0.92	0.93
Adjusted total asset turnover	1.61	1.61	1.54	1.34	1.48	1.50
Financial Leverage
Reported financial leverage	2.12	2.21	2.46	2.23	2.37	2.48
Adjusted financial leverage	5.40	6.80	19.25	6.87	13.14	28.66
Return on Equity (ROE)
Reported ROE	36.41%	34.89%	37.35%	30.13%	27.08%	29.47%
Adjusted ROE	142.36%	166.88%	465.94%	143.39%	239.89%	552.15%
Return on Assets (ROA)
Reported ROA	17.14%	15.77%	15.17%	13.49%	11.42%	11.90%
Adjusted ROA	26.38%	24.55%	24.21%	20.87%	18.25%	19.26%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cintas Corp. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cintas Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Cintas Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Cintas Corp. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., Financial Ratios: Reported vs. Adjusted

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	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Total assets	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Activity Ratio
Total asset turnover¹	1.05	1.03	0.96	0.86	0.92	0.93
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Adjusted total assets	5,956,393)	5,490,155)	5,104,280)	5,323,754)	4,799,865)	4,594,221)
Activity Ratio
Adjusted total asset turnover²	1.61	1.61	1.54	1.34	1.48	1.50

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).

2024 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 9,596,615 ÷ 9,168,817 = 1.05

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 9,596,615 ÷ 5,956,393 = 1.61

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cintas Corp. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Solvency Ratio
Financial leverage¹	2.12	2.21	2.46	2.23	2.37	2.48
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,956,393)	5,490,155)	5,104,280)	5,323,754)	4,799,865)	4,594,221)
Adjusted shareholders’ equity	1,103,948)	807,785)	265,220)	774,778)	365,182)	160,280)
Solvency Ratio
Adjusted financial leverage²	5.40	6.80	19.25	6.87	13.14	28.66

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 9,168,817 ÷ 4,316,372 = 2.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 5,956,393 ÷ 1,103,948 = 5.40

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cintas Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Profitability Ratio
ROE¹	36.41%	34.89%	37.35%	30.13%	27.08%	29.47%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Adjusted shareholders’ equity	1,103,948)	807,785)	265,220)	774,778)	365,182)	160,280)
Profitability Ratio
Adjusted ROE²	142.36%	166.88%	465.94%	143.39%	239.89%	552.15%

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).

2024 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,571,592 ÷ 4,316,372 = 36.41%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 1,571,592 ÷ 1,103,948 = 142.36%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Cintas Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Total assets	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Profitability Ratio
ROA¹	17.14%	15.77%	15.17%	13.49%	11.42%	11.90%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Adjusted total assets	5,956,393)	5,490,155)	5,104,280)	5,323,754)	4,799,865)	4,594,221)
Profitability Ratio
Adjusted ROA²	26.38%	24.55%	24.21%	20.87%	18.25%	19.26%

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).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,571,592 ÷ 9,168,817 = 17.14%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,571,592 ÷ 5,956,393 = 26.38%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Cintas Corp. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp. (NASDAQ:CTAS)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Cintas Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Cintas Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)