Applied Industrial Technologies (AIT)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 498,529 | 502,787 | 494,591 | 488,315 | 495,823 | 483,295 | 489,000 | 487,299 | 473,151 | 455,560 | 424,492 | 389,776 | 357,858 | 329,735 | 308,359 | 227,760 | 205,454 | 171,381 | 18,964 | 80,131 |
| Total assets | US$ in thousands | 3,175,540 | 3,115,660 | 3,044,640 | 3,003,210 | 2,951,910 | 2,854,940 | 2,782,760 | 2,750,510 | 2,743,330 | 2,608,640 | 2,522,900 | 2,474,170 | 2,452,590 | 2,383,570 | 2,225,710 | 2,303,180 | 2,271,810 | 2,305,390 | 2,241,020 | 2,249,250 |
| Operating ROA | 15.70% | 16.14% | 16.24% | 16.26% | 16.80% | 16.93% | 17.57% | 17.72% | 17.25% | 17.46% | 16.83% | 15.75% | 14.59% | 13.83% | 13.85% | 9.89% | 9.04% | 7.43% | 0.85% | 3.56% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $498,529K ÷ $3,175,540K
= 15.70%
The operating return on assets (ROA) of Applied Industrial Technologies exhibited a notable upward trajectory from September 30, 2020, through December 31, 2023. Starting at 3.56% at the end of September 2020, the metric experienced a significant recovery and consistent growth, reaching a peak of 17.46% by March 31, 2023. During this period, the company demonstrated a substantial improvement in operating efficiency and profitability relative to its asset base.
Post-March 2023, the operating ROA displayed a slight decline, decreasing to 17.25% by June 30, 2023, and further to 16.93% at the end of March 2024. This downward trend persisted into subsequent quarters, with the figures declining to 16.80% in June 2024 and 16.26% in September 2024. The ratio continued to contract through the end of 2024 and into the first half of 2025, reaching 15.70% by June 30, 2025.
Overall, the data indicates a period of meaningful operational improvements and efficiency gains from late 2020 to early 2023, followed by a modest decline in operating ROA from mid-2023 onward. The decline suggests potential stabilization or slight deterioration in operating margin or asset utilization efficiency in recent periods. The sustained high levels above 15% from late 2022 onward nonetheless reflect a strong operational performance relative to asset base over the recent timeframe.