Applied Industrial Technologies (AIT)
Fixed asset turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,477,680 | 4,468,470 | 4,448,790 | 4,426,120 | 4,387,880 | 4,290,680 | 4,139,067 | 3,955,317 | 3,784,475 | 3,617,133 | 3,476,550 | 3,348,724 | 3,203,604 | 3,031,543 | 3,023,222 | 3,104,634 | 3,211,463 | 3,367,816 | 3,417,756 | 3,424,973 |
| Property, plant and equipment | US$ in thousands | 118,527 | 115,325 | 113,706 | 113,704 | 115,041 | 115,383 | 112,790 | 110,539 | 111,896 | 111,166 | 112,113 | 113,813 | 115,589 | 116,951 | 120,530 | 120,285 | 121,901 | 123,770 | 126,248 | 125,094 |
| Fixed asset turnover | 37.78 | 38.75 | 39.13 | 38.93 | 38.14 | 37.19 | 36.70 | 35.78 | 33.82 | 32.54 | 31.01 | 29.42 | 27.72 | 25.92 | 25.08 | 25.81 | 26.34 | 27.21 | 27.07 | 27.38 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,477,680K ÷ $118,527K
= 37.78
The fixed asset turnover of Applied Industrial Technologies has displayed a fluctuating trend over the past few quarters. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
There was a consistent increase in the fixed asset turnover from Dec 2020 to Dec 2023, reaching a peak of 39.13 in Dec 2023. This suggests that the company was able to generate more revenue relative to its investment in fixed assets during this period.
However, there was a slight decline in the fixed asset turnover in the subsequent quarters, with the ratio ranging between 36.70 to 38.75. This may indicate a potential decrease in the efficiency of utilizing fixed assets to generate revenue compared to the previous period.
It is essential for Applied Industrial Technologies to closely monitor its fixed asset turnover and assess the reasons behind any fluctuations to ensure optimal utilization of its assets and maintain or improve its financial performance.