Applied Industrial Technologies (AIT)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 495,823 | 473,151 | 357,858 | 205,454 | 88,989 |
| Total assets | US$ in thousands | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 | 2,283,550 |
| Operating ROA | 16.80% | 17.25% | 14.59% | 9.04% | 3.90% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $495,823K ÷ $2,951,910K
= 16.80%
Applied Industrial Technologies' operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate operating income from its assets. The operating ROA increased from 3.90% in 2020 to 16.80% in 2024, reaching its highest level during this period.
This improvement suggests that Applied Industrial Technologies has been effectively utilizing its assets to generate operating income, which is a positive signal for investors and stakeholders. The consistent increase in operating ROA reflects the company's efficiency in managing its operations and maximizing profitability.
Overall, the upward trend in operating ROA demonstrates Applied Industrial Technologies' enhanced operating performance and financial health over the five-year period. It is essential for the company to sustain this positive momentum to ensure continued value creation for its shareholders.