EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Cintas Corp., economic profit calculation

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net operating profit after taxes (NOPAT)¹	1,624,422)	1,467,593)	1,361,214)	1,125,969)	973,389)	1,006,907)
Cost of capital²	16.02%	15.81%	15.53%	15.53%	15.30%	15.01%
Invested capital³	7,220,061)	6,858,846)	6,603,354)	6,735,481)	6,490,211)	6,499,367)

Economic profit⁴	467,956)	383,520)	335,930)	80,155)	(19,420)	31,100)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 1,624,422 – 16.02% × 7,220,061 = 467,956

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Cintas Corp. economic profit increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., NOPAT calculation

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net income	1,571,592)	1,348,010)	1,235,757)	1,110,968)	876,037)	884,981)
Deferred income tax expense (benefit)¹	(30,500)	26,931)	51,635)	(42,080)	(13,292)	34,759)
Increase (decrease) in allowance for credit losses²	2,988)	2,008)	821)	(23,336)	24,358)	4,299)
Increase (decrease) in equity equivalents³	(27,512)	28,939)	52,456)	(65,416)	11,066)	39,058)
Interest expense	100,740)	111,232)	88,844)	98,210)	105,393)	101,736)
Interest expense, operating lease liability⁴	6,701)	5,223)	3,805)	4,051)	4,408)	7,358)
Adjusted interest expense	107,441)	116,455)	92,649)	102,261)	109,801)	109,094)
Tax benefit of interest expense⁵	(22,563)	(24,456)	(19,456)	(21,475)	(23,058)	(22,910)
Adjusted interest expense, after taxes⁶	84,878)	91,999)	73,192)	80,786)	86,743)	86,184)
Interest income	(5,742)	(1,716)	(242)	(467)	(988)	(1,228)
Investment income, before taxes	(5,742)	(1,716)	(242)	(467)	(988)	(1,228)
Tax expense (benefit) of investment income⁷	1,206)	360)	51)	98)	207)	258)
Investment income, after taxes⁸	(4,536)	(1,356)	(191)	(369)	(781)	(970)
(Income) loss from discontinued operations, net of tax⁹	—)	—)	—)	—)	323)	(2,346)
Net operating profit after taxes (NOPAT)	1,624,422)	1,467,593)	1,361,214)	1,125,969)	973,389)	1,006,907)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in equity equivalents to net income.

⁴ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 192,551 × 3.48% = 6,701

⁵ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 107,441 × 21.00% = 22,563

⁶ Addition of after taxes interest expense to net income.

⁷ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 5,742 × 21.00% = 1,206

⁸ Elimination of after taxes investment income.

⁹ Elimination of discontinued operations.

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Cintas Corp. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Income tax expense	402,043)	345,138)	263,011)	176,781)	181,931)	219,764)
Less: Deferred income tax expense (benefit)	(30,500)	26,931)	51,635)	(42,080)	(13,292)	34,759)
Add: Tax savings from interest expense	22,563)	24,456)	19,456)	21,475)	23,058)	22,910)
Less: Tax imposed on investment income	1,206)	360)	51)	98)	207)	258)
Cash operating taxes	453,900)	342,302)	230,781)	240,238)	218,074)	207,657)

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).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Cintas Corp. cash operating taxes increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., invested capital calculation (financing approach)

US$ in thousands

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Debt due within one year	449,595)	—)	311,574)	899,070)	—)	312,264)
Debt due after one year	2,025,934)	2,486,405)	2,483,932)	1,642,833)	2,539,705)	2,537,507)
Operating lease liability¹	192,551)	181,988)	172,936)	174,624)	165,726)	198,864)
Total reported debt & leases	2,668,080)	2,668,393)	2,968,442)	2,716,527)	2,705,431)	3,048,635)
Shareholders’ equity	4,316,372)	3,863,986)	3,308,196)	3,687,847)	3,235,202)	3,002,721)
Net deferred tax (assets) liabilities²	475,512)	498,356)	473,777)	386,647)	388,579)	438,179)
Allowance for credit losses³	17,914)	14,926)	12,918)	12,097)	62,167)	37,809)
Equity equivalents⁴	493,426)	513,282)	486,695)	398,744)	450,746)	475,988)
Accumulated other comprehensive (income) loss, net of tax⁵	(91,201)	(77,778)	(107,917)	(30,888)	153,380)	39,152)
Adjusted shareholders’ equity	4,718,597)	4,299,490)	3,686,974)	4,055,703)	3,839,328)	3,517,861)
Construction in progress⁶	(166,616)	(109,037)	(52,062)	(36,749)	(54,548)	(67,129)
Invested capital	7,220,061)	6,858,846)	6,603,354)	6,735,481)	6,490,211)	6,499,367)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of equity equivalents to shareholders’ equity.

⁵ Removal of accumulated other comprehensive income.

⁶ Subtraction of construction in progress.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Cintas Corp. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., cost of capital calculations

May 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	76,064,420)	76,064,420)	÷	78,649,771)	=	0.97	0.97	×	16.46%	=	15.91%
Debt³	2,392,800)	2,392,800)	÷	78,649,771)	=	0.03	0.03	×	4.00% × (1 – 21.00%)	=	0.10%
Operating lease liability⁴	192,551)	192,551)	÷	78,649,771)	=	0.00	0.00	×	3.48% × (1 – 21.00%)	=	0.01%
Total:	78,649,771)					1.00					16.02%

Based on: 10-K (reporting date: 2024-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

May 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	51,334,724)	51,334,724)	÷	53,960,512)	=	0.95	0.95	×	16.46%	=	15.65%
Debt³	2,443,800)	2,443,800)	÷	53,960,512)	=	0.05	0.05	×	4.00% × (1 – 21.00%)	=	0.14%
Operating lease liability⁴	181,988)	181,988)	÷	53,960,512)	=	0.00	0.00	×	2.87% × (1 – 21.00%)	=	0.01%
Total:	53,960,512)					1.00					15.81%

Based on: 10-K (reporting date: 2023-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

May 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	41,410,212)	41,410,212)	÷	44,445,348)	=	0.93	0.93	×	16.46%	=	15.33%
Debt³	2,862,200)	2,862,200)	÷	44,445,348)	=	0.06	0.06	×	3.70% × (1 – 21.00%)	=	0.19%
Operating lease liability⁴	172,936)	172,936)	÷	44,445,348)	=	0.00	0.00	×	2.20% × (1 – 21.00%)	=	0.01%
Total:	44,445,348)					1.00					15.53%

Based on: 10-K (reporting date: 2022-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

May 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	40,194,294)	40,194,294)	÷	43,157,718)	=	0.93	0.93	×	16.46%	=	15.33%
Debt³	2,788,800)	2,788,800)	÷	43,157,718)	=	0.06	0.06	×	3.80% × (1 – 21.00%)	=	0.19%
Operating lease liability⁴	174,624)	174,624)	÷	43,157,718)	=	0.00	0.00	×	2.32% × (1 – 21.00%)	=	0.01%
Total:	43,157,718)					1.00					15.53%

Based on: 10-K (reporting date: 2021-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

May 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	31,649,998)	31,649,998)	÷	34,619,924)	=	0.91	0.91	×	16.46%	=	15.04%
Debt³	2,804,200)	2,804,200)	÷	34,619,924)	=	0.08	0.08	×	3.80% × (1 – 21.00%)	=	0.24%
Operating lease liability⁴	165,726)	165,726)	÷	34,619,924)	=	0.00	0.00	×	2.66% × (1 – 21.00%)	=	0.01%
Total:	34,619,924)					1.00					15.30%

Based on: 10-K (reporting date: 2020-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

May 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	26,818,808)	26,818,808)	÷	30,016,373)	=	0.89	0.89	×	16.46%	=	14.70%
Debt³	2,998,700)	2,998,700)	÷	30,016,373)	=	0.10	0.10	×	3.70% × (1 – 21.00%)	=	0.29%
Operating lease liability⁴	198,864)	198,864)	÷	30,016,373)	=	0.01	0.01	×	3.70% × (1 – 21.00%)	=	0.02%
Total:	30,016,373)					1.00					15.01%

Based on: 10-K (reporting date: 2019-05-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Cintas Corp., economic spread ratio calculation

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	467,956)	383,520)	335,930)	80,155)	(19,420)	31,100)
Invested capital²	7,220,061)	6,858,846)	6,603,354)	6,735,481)	6,490,211)	6,499,367)
Performance Ratio
Economic spread ratio³	6.48%	5.59%	5.09%	1.19%	-0.30%	0.48%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 467,956 ÷ 7,220,061 = 6.48%

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Cintas Corp. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., economic profit margin calculation

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	467,956)	383,520)	335,930)	80,155)	(19,420)	31,100)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Performance Ratio
Economic profit margin²	4.88%	4.35%	4.28%	1.13%	-0.27%	0.45%

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).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × 467,956 ÷ 9,596,615 = 4.88%

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Cintas Corp. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp. (NASDAQ:CTAS)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin