Applied Industrial Technologies (AIT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,477,670 | 4,387,870 | 3,784,480 | 3,203,600 | 3,212,740 |
| Property, plant and equipment | US$ in thousands | 118,527 | 115,041 | 111,896 | 115,589 | 121,901 |
| Fixed asset turnover | 37.78 | 38.14 | 33.82 | 27.72 | 26.36 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,477,670K ÷ $118,527K
= 37.78
Applied Industrial Technologies has shown a consistent improvement in its fixed asset turnover ratio over the past five years. The company's fixed asset turnover ratio has increased from 26.36 in 2020 to 37.78 in 2024. This indicates that the company has been able to generate more revenue from its fixed assets over the years.
A high fixed asset turnover ratio suggests that Applied Industrial Technologies is effectively utilizing its fixed assets to generate sales. This efficiency can result from better operational management, increased production capacity utilization, or strategic investment in productive assets.
The upward trend in the fixed asset turnover ratio reflects positively on the company's ability to generate sales relative to its investment in fixed assets. It also indicates improved operational efficiency and potentially lower costs associated with maintaining and utilizing fixed assets.
Overall, the increasing trend in Applied Industrial Technologies' fixed asset turnover ratio demonstrates the company's effectiveness in optimizing the use of its fixed assets to generate revenue, which is a positive signal for investors and stakeholders.