Applied Industrial Technologies (AIT)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.85% | 29.33% | 29.25% | 29.20% | 29.19% |
| Operating profit margin | 11.07% | 10.78% | 9.46% | 6.41% | 2.77% |
| Pretax margin | 11.12% | 10.25% | 8.71% | 5.53% | 1.72% |
| Net profit margin | 8.62% | 7.90% | 6.80% | 4.52% | 0.75% |
Applied Industrial Technologies has shown consistent improvement in its profitability ratios over the past five years.
The gross profit margin has slightly increased from 29.19% in 2020 to 29.85% in 2024, indicating the company's ability to effectively manage its cost of goods sold. This improvement suggests that the company is becoming more efficient in generating profit from its core operations.
The operating profit margin has steadily increased from 2.77% in 2020 to 11.07% in 2024. This demonstrates the company's success in managing its operating expenses more effectively, leading to a higher percentage of revenue converted into operating profit.
The pretax margin has also shown positive growth, rising from 1.72% in 2020 to 11.12% in 2024. This indicates that Applied Industrial Technologies has been able to increase its profitability before accounting for taxes, reflecting improved operational efficiency and effectiveness in managing non-operating expenses.
The net profit margin, which reflects the company's overall profitability after all expenses, has consistently increased from 0.75% in 2020 to 8.62% in 2024. This signifies that the company has been able to generate higher net income relative to its revenue, showcasing improved performance in generating bottom-line profits.
Overall, Applied Industrial Technologies' profitability ratios show a positive trend, indicating a stronger financial performance and improved efficiency in generating profits over the years.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.80% | 17.25% | 14.59% | 9.04% | 3.90% |
| Return on assets (ROA) | 13.07% | 12.64% | 10.50% | 6.37% | 1.05% |
| Return on total capital | 22.94% | 23.09% | 19.83% | 12.10% | 5.45% |
| Return on equity (ROE) | 22.84% | 23.77% | 22.40% | 15.52% | 2.85% |
Applied Industrial Technologies has shown a consistent improvement in profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) increased from 3.90% in 2020 to 16.80% in 2024, indicating the company's ability to generate operating income relative to its total assets has significantly improved.
Similarly, the Return on Assets (ROA) increased from 1.05% in 2020 to 13.07% in 2024, showing that the company is effectively utilizing its assets to generate profits. Additionally, the Return on Total Capital has steadily increased from 5.45% in 2020 to 22.94% in 2024, indicating that the company is generating higher returns on its total invested capital.
Furthermore, the Return on Equity (ROE) has also shown a positive trend, going from 2.85% in 2020 to 22.84% in 2024. This demonstrates that Applied Industrial Technologies is efficiently utilizing its equity to generate profits for its shareholders.
Overall, the profitability ratios for Applied Industrial Technologies indicate a strong financial performance and improved efficiency in generating profits over the years, reflecting positively on the company's operational and financial management.