CTASNEUTRAL

CTAS Gross Margin Analysis

51.0%

Updated 228h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services – at 51.0%, CTAS retains $0.51 of every sales dollar.

Sector Performance

60th percentile

CTAS

51.0%

Sector Median

44.6%

Sector Avg

45.5%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services – at 51.0%, CTAS retains $0.51 of every sales dollar.

This is above the sector median of 44.7%, placing the company at the 60th percentile among its peers, meaning it outperforms most competitors on this cost-efficiency measure. No year-over-year or quarter-over-quarter change is available, and the trend over the last eight quarters is also listed as N/A, so no direction can be determined. The combination of a high gross margin relative to the sector with no trend data suggests a potential advantage in pricing or cost control, but the lack of historical movement adds uncertainty about whether this level is stable or fluctuating. The metric supports the overall NEUTRAL verdict: the strong margin level is a positive, but the absence of trend information prevents assigning either a bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about CTAS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are CTAS's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.