Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Cintas Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Federal	327,616)	248,413)	162,269)	164,104)	153,736)	134,174)
State and local	79,583)	56,589)	32,431)	42,340)	34,502)	40,949)
Foreign	25,344)	13,205)	16,676)	12,417)	6,985)	9,882)
Current	432,543)	318,207)	211,376)	218,861)	195,223)	185,005)
Deferred	(30,500)	26,931)	51,635)	(42,080)	(13,292)	34,759)
Income tax expense	402,043)	345,138)	263,011)	176,781)	181,931)	219,764)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Cintas Corp. current increased from 2022 to 2023 and from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Cintas Corp. deferred decreased from 2022 to 2023 and from 2023 to 2024.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cintas Corp. income tax expense increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., effective income tax rate (EITR) reconciliation

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
	U.S. federal statutory rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	20.37%	20.38%	17.55%	13.73%	17.19%	19.94%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cintas Corp. effective income tax rate increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Cintas Corp., components of deferred tax assets and liabilities

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Reserves related to accounts receivable	13,478)	12,562)	10,928)	10,292)	14,718)	9,495)
Inventory reserves	18,913)	22,822)	28,020)	30,617)	13,744)	9,257)
Insurance reserves	45,154)	45,153)	45,237)	45,802)	45,197)	45,339)
Stock-based compensation	71,146)	63,186)	62,522)	74,898)	78,802)	77,697)
Net operating loss and foreign related carry-forwards	2,169)	—)	—)	3,885)	7,657)	9,109)
Treasury locks	—)	—)	—)	3,140)	39,046)	5,806)
Operating lease liabilities	48,964)	46,258)	43,745)	44,530)	42,191)	—)
Deferred compensation and other	114,786)	92,538)	92,250)	107,528)	73,562)	48,922)
Deferred tax assets	314,610)	282,519)	282,702)	320,692)	314,917)	205,625)
Valuation allowance	(2,129)	—)	—)	(2,037)	(6,411)	(7,308)
Deferred tax assets, less valuation allowance	312,481)	282,519)	282,702)	318,655)	308,506)	198,317)
Uniform and other rental items in service	(251,394)	(248,883)	(226,510)	(202,846)	(189,787)	(194,939)
Property and equipment	(175,214)	(171,971)	(171,819)	(167,622)	(177,664)	(159,186)
Intangibles and other amortizable assets	(178,583)	(190,299)	(199,256)	(207,834)	(207,610)	(210,531)
Treasury locks	(37,202)	(32,830)	(31,566)	—)	—)	—)
Capitalized contract costs	(91,551)	(88,056)	(81,314)	(79,356)	(77,741)	(70,228)
Operating lease right-of-use assets	(48,964)	(46,258)	(43,745)	(44,530)	(42,191)	—)
State taxes and other	(5,085)	(2,578)	(2,269)	(3,114)	(2,092)	(1,612)
Deferred tax liabilities	(787,993)	(780,875)	(756,479)	(705,302)	(697,085)	(636,496)
Net deferred tax asset (liability)	(475,512)	(498,356)	(473,777)	(386,647)	(388,579)	(438,179)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cintas Corp. deferred tax assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred tax assets, less valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cintas Corp. deferred tax assets, less valuation allowance decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Cintas Corp. net deferred tax asset (liability) decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Cintas Corp., deferred tax assets and liabilities, classification

US$ in thousands

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
	Deferred tax liabilities	475,512)	498,356)	473,777)	386,647)	388,579)	438,179)

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
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Cintas Corp. deferred tax liabilities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

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 Liabilities
Total liabilities (as reported)	4,852,445)	4,682,370)	4,839,060)	4,548,976)	4,434,683)	4,433,941)
Less: Noncurrent deferred tax liabilities, net	475,512)	498,356)	473,777)	386,647)	388,579)	438,179)
Total liabilities (adjusted)	4,376,933)	4,184,014)	4,365,283)	4,162,329)	4,046,104)	3,995,762)
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: Net deferred tax assets (liabilities)	(475,512)	(498,356)	(473,777)	(386,647)	(388,579)	(438,179)
Shareholders’ equity (adjusted)	4,791,884)	4,362,342)	3,781,973)	4,074,494)	3,623,781)	3,440,900)
Adjustment to Net Income
Net income (as reported)	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Add: Deferred income tax expense (benefit)	(30,500)	26,931)	51,635)	(42,080)	(13,292)	34,759)
Net income (adjusted)	1,541,092)	1,374,941)	1,287,392)	1,068,888)	862,745)	919,740)

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
Net Profit Margin
Reported net profit margin	16.38%	15.29%	15.73%	15.61%	12.36%	12.84%
Adjusted net profit margin	16.06%	15.60%	16.39%	15.02%	12.18%	13.34%
Financial Leverage
Reported financial leverage	2.12	2.21	2.46	2.23	2.37	2.48
Adjusted financial leverage	1.91	1.96	2.15	2.02	2.12	2.16
Return on Equity (ROE)
Reported ROE	36.41%	34.89%	37.35%	30.13%	27.08%	29.47%
Adjusted ROE	32.16%	31.52%	34.04%	26.23%	23.81%	26.73%
Return on Assets (ROA)
Reported ROA	17.14%	15.77%	15.17%	13.49%	11.42%	11.90%
Adjusted ROA	16.81%	16.09%	15.80%	12.98%	11.25%	12.37%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cintas Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
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 adjusted net income divided by adjusted shareholders’ equity.	Cintas Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted 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)
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Profitability Ratio
Net profit margin¹	16.38%	15.29%	15.73%	15.61%	12.36%	12.84%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,541,092)	1,374,941)	1,287,392)	1,068,888)	862,745)	919,740)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Profitability Ratio
Adjusted net profit margin²	16.06%	15.60%	16.39%	15.02%	12.18%	13.34%

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 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,571,592 ÷ 9,596,615 = 16.38%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 1,541,092 ÷ 9,596,615 = 16.06%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cintas Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

	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 Deferred Taxes
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)
Adjusted shareholders’ equity	4,791,884)	4,362,342)	3,781,973)	4,074,494)	3,623,781)	3,440,900)
Solvency Ratio
Adjusted financial leverage²	1.91	1.96	2.15	2.02	2.12	2.16

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 = Total assets ÷ Adjusted shareholders’ equity
= 9,168,817 ÷ 4,791,884 = 1.91

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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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,541,092)	1,374,941)	1,287,392)	1,068,888)	862,745)	919,740)
Adjusted shareholders’ equity	4,791,884)	4,362,342)	3,781,973)	4,074,494)	3,623,781)	3,440,900)
Profitability Ratio
Adjusted ROE²	32.16%	31.52%	34.04%	26.23%	23.81%	26.73%

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 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 1,541,092 ÷ 4,791,884 = 32.16%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Cintas Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved 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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,541,092)	1,374,941)	1,287,392)	1,068,888)	862,745)	919,740)
Total assets	9,168,817)	8,546,356)	8,147,256)	8,236,823)	7,669,885)	7,436,662)
Profitability Ratio
Adjusted ROA²	16.81%	16.09%	15.80%	12.98%	11.25%	12.37%

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 × Adjusted net income ÷ Total assets
= 100 × 1,541,092 ÷ 9,168,817 = 16.81%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Cintas Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Cintas Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)