Applied Industrial Technologies (AIT)
Pretax margin
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 498,130 | 479,732 | 479,347 | 469,696 | 449,811 | 427,967 | 395,209 | 361,298 | 329,790 | 302,979 | 281,973 | 199,766 | 177,062 | 143,259 | -10,584 | 48,961 | 55,236 | 77,277 | 188,422 | 189,486 |
| Revenue (ttm) | US$ in thousands | 4,477,680 | 4,468,470 | 4,448,790 | 4,426,120 | 4,387,880 | 4,290,680 | 4,139,067 | 3,955,317 | 3,784,475 | 3,617,133 | 3,476,550 | 3,348,724 | 3,203,604 | 3,031,543 | 3,023,222 | 3,104,634 | 3,211,463 | 3,367,816 | 3,417,756 | 3,424,973 |
| Pretax margin | 11.12% | 10.74% | 10.77% | 10.61% | 10.25% | 9.97% | 9.55% | 9.13% | 8.71% | 8.38% | 8.11% | 5.97% | 5.53% | 4.73% | -0.35% | 1.58% | 1.72% | 2.29% | 5.51% | 5.53% |
June 30, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $498,130K ÷ $4,477,680K
= 11.12%
The pretax margin of Applied Industrial Technologies has shown a generally positive trend over the past few quarters. From a low of -0.35% in the first quarter of 2021, the pretax margin has steadily improved, reaching 11.12% in the most recent quarter ending in June 2024. This indicates that the company has been effectively managing its operating expenses relative to its operating income.
The consistent upward trend in the pretax margin reflects the company's ability to generate higher levels of profitability before accounting for taxes. This could be attributed to various factors such as cost control measures, improved operational efficiency, or potentially higher pricing power.
Overall, the increasing pretax margin suggests that Applied Industrial Technologies has been successful in enhancing its profitability and financial performance over the recent quarters. It indicates that the company is effectively managing its costs and operations to generate higher levels of earnings relative to its revenue.