Applied Industrial Technologies (AIT)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 498,130 | 449,811 | 329,790 | 177,062 | 55,236 |
| Revenue | US$ in thousands | 4,477,670 | 4,387,870 | 3,784,480 | 3,203,600 | 3,212,740 |
| Pretax margin | 11.12% | 10.25% | 8.71% | 5.53% | 1.72% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $498,130K ÷ $4,477,670K
= 11.12%
The pretax margin of Applied Industrial Technologies has shown a positive trend over the past five years, indicating a consistent improvement in the company's ability to generate profits before taxes relative to its total revenue. The pretax margin increased from 1.72% in 2020 to 11.12% in 2024, reflecting a significant enhancement in operational efficiency and cost management. This progression suggests that the company has been successful in controlling costs and optimizing revenue streams, leading to higher profitability levels. The steady growth in pretax margin indicates that Applied Industrial Technologies has been effectively managing its financial performance and is on a trajectory of improved profitability.