Cintas Time Trend Analysis
Cintas Corporation
Cintas Corporation Time-Trend Analysis
Cintas Corporation, founded in 1968 by Richard T. Farmer, is an American company that provides special services and products to businesses across North America, Latin America, Europe, and Asia. Cintas categorizes its business into four different operating segments. The Rental Uniforms and Ancillary Products operating segment, the Uniform Direct Sales operating segment, the First Aid, Safety, and Fire Protection Services operating segment, and the Document Management Services operating segments make up the four different operating segments of Cintas Corporation. Cintas Corporation designs and manufactures professional uniforms …show more content…
The table focuses on the profitability, the asset management and the leverage of Cintas Corporation. First lets focus on Cintas Corporation’s profitability. Cintas has steadily improved from 2009 to 2011. Profit Margin for Cintas has increased by .5% from 2009 to 2011. From 2009 to 2011 Cintas has increased its revenues, which is usually a good thing, but they have also allowed expenses to increase. Their profit margin was able to increase because Cintas increased revenue at a greater rate than their expenses. Cintas has also improved their return on equity from 2009 to 2011. Cintas return on equity improved by 1.17%. Growing return on equity is vital for Cintas profitability. The growing return on equity shows investors that Cintas could be a good company for their investment. With more investments come more opportunities for Cintas to increase revenue and profitability. The last ratio under profitability is return on assets. While profit margin and return on equity increased, return on assets decreased. Cintas return on assets decreased by .41% from 2009 to 2010. This is not good for Cintas. When Cintas return on assets decreased it means that Cintas did not do a good job of converting its assets or investment into profits for their company. This may have occurred because Cintas did not do a good job of using it’s investments and placing them in the correct areas that would benefit profits the most. Overall, Cintas profitability improved over the three-year span. One recommendation to help return on assets would be to figure out which area of the company needs the most investment and will give you the better return on your investment or assets. This could involve some type of analyst of each individual segment of
Cintas Corporation Time-Trend Analysis
Cintas Corporation, founded in 1968 by Richard T. Farmer, is an American company that provides special services and products to businesses across North America, Latin America, Europe, and Asia. Cintas categorizes its business into four different operating segments. The Rental Uniforms and Ancillary Products operating segment, the Uniform Direct Sales operating segment, the First Aid, Safety, and Fire Protection Services operating segment, and the Document Management Services operating segments make up the four different operating segments of Cintas Corporation. Cintas Corporation designs and manufactures professional uniforms …show more content…
The table focuses on the profitability, the asset management and the leverage of Cintas Corporation. First lets focus on Cintas Corporation’s profitability. Cintas has steadily improved from 2009 to 2011. Profit Margin for Cintas has increased by .5% from 2009 to 2011. From 2009 to 2011 Cintas has increased its revenues, which is usually a good thing, but they have also allowed expenses to increase. Their profit margin was able to increase because Cintas increased revenue at a greater rate than their expenses. Cintas has also improved their return on equity from 2009 to 2011. Cintas return on equity improved by 1.17%. Growing return on equity is vital for Cintas profitability. The growing return on equity shows investors that Cintas could be a good company for their investment. With more investments come more opportunities for Cintas to increase revenue and profitability. The last ratio under profitability is return on assets. While profit margin and return on equity increased, return on assets decreased. Cintas return on assets decreased by .41% from 2009 to 2010. This is not good for Cintas. When Cintas return on assets decreased it means that Cintas did not do a good job of converting its assets or investment into profits for their company. This may have occurred because Cintas did not do a good job of using it’s investments and placing them in the correct areas that would benefit profits the most. Overall, Cintas profitability improved over the three-year span. One recommendation to help return on assets would be to figure out which area of the company needs the most investment and will give you the better return on your investment or assets. This could involve some type of analyst of each individual segment of