Applied Industrial Technologies (AIT)

The operating return on assets (Operating ROA) for Applied Industrial Technologies has demonstrated a positive upward trend over the three-year period from June 30, 2021, to June 30, 2024, followed by a slight decline into 2025. Specifically, the Operating ROA increased from 9.04% as of June 30, 2021, to 14.59% in 2022, representing a substantial improvement in the company's efficiency in generating operating income relative to its total assets. Continuing this positive trajectory, the Operating ROA further increased to 17.25% by June 30, 2023, indicating an enhanced ability to utilize its assets effectively to generate operating profits.

However, in the subsequent year, the Operating ROA experienced a marginal decline to 16.80% as of June 30, 2024. Despite this decrease, the ratio remains significantly higher than the 2021 figure, suggesting that the company maintained a relatively high level of asset efficiency and operational profitability. By June 30, 2025, the Operating ROA further decreased to 15.70%, representing a slight reduction from the previous year but still remaining well above the 2021 baseline.

Overall, the trend reflects a strong initial improvement in asset utilization and operational performance from 2021 through 2023, potentially driven by increased operational efficiency, higher profit margins, or both. The subsequent stabilization and slight decline in 2024 and 2025 may suggest a normalization of efficiency gains, market or operational challenges, or strategic shifts that impacted the company's capacity to sustain the previous peak levels of asset-related profitability. Nonetheless, the ratios indicate that Applied Industrial Technologies has historically been capable of generating robust operating income relative to its asset base, positioning it as a company with a generally efficient operational profile over the period analyzed.