Applied Industrial Technologies (AIT)

The fixed asset turnover ratio for Applied Industrial Technologies demonstrates notable fluctuations over the specified period. As of June 30, 2021, the ratio was 15.96, indicating that the company generated approximately $15.96 in sales per dollar invested in fixed assets. This figure increased significantly to 34.06 by June 30, 2022, more than doubling the prior year's value, which suggests enhanced asset efficiency and potentially improved utilization of fixed assets to generate revenue during that period.

However, this elevated level was not sustained, as the ratio declined to 20.46 by June 30, 2023. This reduction indicates a decrease in asset efficiency, possibly reflecting either increased investment in fixed assets without a proportional increase in sales or a decline in sales relative to the asset base. The downward trend continued into June 30, 2024, with the ratio falling further to 17.79, reinforcing the notion of diminished asset effectiveness in generating sales.

The ratio for June 30, 2025, is not available, which precludes further temporal comparison. Overall, the data points to a peak in fixed asset efficiency in 2022, followed by a decline in subsequent years, suggesting a period of asset utilization optimization followed by a possible oversupply of assets or operational challenges impacting sales productivity relative to fixed assets.