Are ESXi 5.x patches cumulative?

I find this question being asked again and again in the VMware forums by people who cannot just use Update Manager for patching, and most times the answers that are given there are a bit vague and unclear or even plain wrong. This is because ESXi patching is a really complex and not well documented matter. So I need to provide some background information before I'm going to answer this question:
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Updated ESXi-Customizer-PS script allows to create ESXi 5.1 Offline bundle

Following the availability of the ESXi 5.1 packages in the VMware Online depot I have updated my ESXi-Customizer-PS script and made two minor, but important changes:
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ESXi 5.1 GA is now available in the VMware Online Depot

The brand new ESXi 5.1 GA packages have finally been uploaded to the VMware Online Depot. That means you can use them with the PowerCLI ImageBuilder snapin and my ESXi-Customizer-PS script to build your own customized installation ISOs or Offline bundles.

To improve the usage of the new ESXi 5.1 ImageProfiles I have updated my ESXi-Customizer-PS script (see my next post).

The ESXi 5.1 GA ImageProfiles