Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)
Decomposition of ROIC
Operating Profit Margin (OPM)
Turnover of Capital (TO)
Effective Cash Tax Rate (CTR)

Cintas Corp., ROIC 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)
Net operating profit after taxes (NOPAT)¹	1,624,422)	1,467,593)	1,361,214)	1,125,969)	973,389)	1,006,907)
Invested capital²	7,220,061)	6,858,846)	6,603,354)	6,735,481)	6,490,211)	6,499,367)
Performance Ratio
ROIC³	22.50%	21.40%	20.61%	16.72%	15.00%	15.49%

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 Invested capital. See details »

³ 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,624,422 ÷ 7,220,061 = 22.50%

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Performance ratio	Description	The company
ROIC	A measure of the periodic, after tax, cash-on-cash yield earned in the business.	Cintas Corp. ROIC improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., decomposition of ROIC


	ROIC	=	OPM¹	×	TO²	×	1 – CTR³
May 31, 2024	22.50%	=	21.66%	×	1.33	×	78.16%
May 31, 2023	21.40%	=	20.53%	×	1.29	×	81.09%
May 31, 2022	20.61%	=	20.27%	×	1.19	×	85.50%
May 31, 2021	16.72%	=	19.20%	×	1.06	×	82.42%
May 31, 2020	15.00%	=	16.82%	×	1.09	×	81.70%
May 31, 2019	15.49%	=	17.62%	×	1.06	×	82.90%

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 Operating profit margin (OPM). See calculations »

² Turnover of capital (TO). See calculations »

³ Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2024 year is the increase in profitability measured by operating profit margin (OPM) ratio.

Cintas Corp., OPM 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)
Net operating profit after taxes (NOPAT)¹	1,624,422)	1,467,593)	1,361,214)	1,125,969)	973,389)	1,006,907)
Add: Cash operating taxes²	453,900)	342,302)	230,781)	240,238)	218,074)	207,657)
Net operating profit before taxes (NOPBT)	2,078,322)	1,809,895)	1,591,996)	1,366,207)	1,191,462)	1,214,564)

Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Profitability Ratio
OPM³	21.66%	20.53%	20.27%	19.20%	16.82%	17.62%

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 Cash operating taxes. See details »

³ 2024 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 2,078,322 ÷ 9,596,615 = 21.66%

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Profitability ratio	Description	The company
OPM	The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales.	Cintas Corp. OPM improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., TO 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)
Revenue	9,596,615)	8,815,769)	7,854,459)	7,116,340)	7,085,120)	6,892,303)
Invested capital¹	7,220,061)	6,858,846)	6,603,354)	6,735,481)	6,490,211)	6,499,367)
Efficiency Ratio
TO²	1.33	1.29	1.19	1.06	1.09	1.06

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 Invested capital. See details »

² 2024 Calculation
TO = Revenue ÷ Invested capital
= 9,596,615 ÷ 7,220,061 = 1.33

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Efficiency ratio	Description	The company
TO	The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets.	Cintas Corp. TO improved from 2022 to 2023 and from 2023 to 2024.

Cintas Corp., CTR 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)
Net operating profit after taxes (NOPAT)¹	1,624,422)	1,467,593)	1,361,214)	1,125,969)	973,389)	1,006,907)
Add: Cash operating taxes²	453,900)	342,302)	230,781)	240,238)	218,074)	207,657)
Net operating profit before taxes (NOPBT)	2,078,322)	1,809,895)	1,591,996)	1,366,207)	1,191,462)	1,214,564)
Tax Rate
CTR³	21.84%	18.91%	14.50%	17.58%	18.30%	17.10%

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 Cash operating taxes. See details »

³ 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 453,900 ÷ 2,078,322 = 21.84%

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Tax rate	Description	The company
CTR	Effective cash tax rate on operating income.	Cintas Corp. CTR increased from 2022 to 2023 and from 2023 to 2024.

Cintas Corp. (NASDAQ:CTAS)

Return on Capital (ROC)

Return on Invested Capital (ROIC)

Decomposition of ROIC

Operating Profit Margin (OPM)

Turnover of Capital (TO)

Effective Cash Tax Rate (CTR)