Applied Industrial Technologies (AIT)
Total asset turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,563,420 | 4,479,410 | 4,412,790 | 3,810,680 | 3,235,920 |
| Total assets | US$ in thousands | 3,175,540 | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 |
| Total asset turnover | 1.44 | 1.52 | 1.61 | 1.55 | 1.42 |
June 30, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,563,420K ÷ $3,175,540K
= 1.44
The total asset turnover ratio for Applied Industrial Technologies demonstrates a generally positive trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 1.42 in 2021 to a peak of 1.61 in 2023, indicating an improvement in the company's efficiency in generating sales from its assets during this interval. This increase suggests that the company was becoming more effective at utilizing its assets to produce revenue, possibly reflecting operational improvements or strategic asset management.
However, after reaching the highest point in 2023, the ratio exhibits a declining trend, decreasing to 1.52 in 2024 and further to 1.44 in 2025. This subsequent decline could imply a reduction in asset efficiency, which might be attributed to increased asset base without a commensurate rise in sales or potential changes in operational focus. Alternatively, it could reflect market or industry-specific factors impacting asset utilization.
Overall, the pattern indicates that Applied Industrial Technologies experienced a period of enhanced asset utilization up to 2023, followed by a modest decline in the subsequent years. The fluctuations suggest a need to monitor asset management strategies to sustain or improve asset efficiency in future periods.