Applied Industrial Technologies (AIT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 30.31% | 30.04% | 29.51% | 29.24% | 29.26% | 29.18% | 29.44% | 29.36% | 29.16% | 29.08% | 29.03% | 29.09% | 29.05% | 29.17% | 29.19% | 28.85% | 28.91% | 28.74% | 28.49% | 28.75% |
| Operating profit margin | 10.92% | 11.17% | 11.04% | 10.89% | 11.07% | 10.80% | 10.96% | 10.96% | 10.72% | 10.55% | 10.19% | 9.79% | 9.39% | 9.05% | 8.80% | 6.74% | 6.35% | 5.59% | 0.62% | 2.55% |
| Pretax margin | 10.98% | 11.27% | 11.21% | 11.05% | 11.12% | 10.72% | 10.74% | 10.57% | 10.19% | 9.92% | 9.49% | 9.07% | 8.65% | 8.31% | 8.04% | 5.91% | 5.47% | 4.67% | -0.35% | 1.56% |
| Net profit margin | 8.61% | 8.64% | 8.62% | 8.57% | 8.61% | 8.37% | 8.39% | 8.18% | 7.86% | 7.73% | 7.32% | 7.07% | 6.76% | 6.52% | 6.43% | 4.82% | 4.47% | 3.77% | -0.76% | 0.64% |
Applied Industrial Technologies exhibits a generally positive movement in profitability ratios over the analyzed period, reflecting improved operational efficiency and profitability.
Gross Profit Margin: The gross profit margin has shown consistent growth, ranging from approximately 28.49% at the end of 2020 to a peak of around 30.31% in mid-2025. This gradual increase indicates that the company has been able to either improve its core pricing strategies or maintain its cost of goods sold more effectively than its revenue growth, resulting in higher gross profitability.
Operating Profit Margin: Similarly, the operating profit margin has demonstrated a steady upward trend, increasing from a low of approximately 0.62% at the end of 2020 to over 10.92% by mid-2025. This improvement suggests that the company has been successful in controlling operating expenses relative to sales, leading to higher operating efficiency and earnings from core operations.
Pretax Margin: The pretax profit margin has recovered from a negative portrayal in late 2020 (-0.35%) to positive levels around 11% by mid-2025. Such a trajectory indicates that the company has managed to improve its profitability before considering income taxes, which is consistent with the strengthening of its overall profitability profile.
Net Profit Margin: The net profit margin mirrors the enhancements seen in pretax margins, rising from approximately 0.64% at the close of 2020 to about 8.61% in mid-2025. The continuous upward movement reflects effective cost control, tax management, and operational efficiency, translating into a consistent increase in bottom-line profitability.
Overall, applied industrial Technologies demonstrates a sustained improvement across all profitability ratios over the analyzed period. These trends collectively point towards operational enhancements, better cost management, and potentially favorable market conditions that have contributed to increased profitability margins.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 12.38% | 12.47% | 12.68% | 12.79% | 13.07% | 13.12% | 13.46% | 13.22% | 12.64% | 12.79% | 12.08% | 11.37% | 10.50% | 9.97% | 10.12% | 7.07% | 6.37% | 5.01% | -1.04% | 0.89% |
| Return on total capital | 26.94% | 27.44% | 27.76% | 28.06% | 29.55% | 29.05% | 30.40% | 31.64% | 32.34% | 32.88% | 32.63% | 31.86% | 31.08% | 29.97% | 30.14% | 22.99% | 21.70% | 17.75% | 1.59% | 8.82% |
| Return on equity (ROE) | 21.31% | 21.27% | 21.53% | 21.92% | 22.84% | 22.44% | 23.29% | 23.68% | 23.77% | 24.17% | 23.52% | 23.03% | 22.40% | 21.63% | 22.05% | 16.69% | 15.52% | 12.35% | -2.65% | 2.26% |
The profitability ratios for Applied Industrial Technologies over the period from September 2020 through June 2025 reveal a generally positive trend, characterized by increasing efficiency in generating earnings relative to assets and capital, followed by a slight decline in recent periods.
Operating Return on Assets (Operating ROA):
The Operating ROA demonstrates a notable upward trajectory during the period, beginning at 3.56% as of September 2020. It experienced a significant decline to 0.85% at the end of 2020, likely attributable to temporary operational challenges or market fluctuations, but rebounded strongly in subsequent quarters. From March 2021 onward, the Operating ROA steadily increased, reaching a peak of approximately 17.46% in March 2023. Post-peak, it exhibited a slight decline, settling at 16.93% by March 2024 and continuing to hover around 16.2% to 16.8% through mid-2025. This pattern indicates improved operational efficiency during the early COVID-19 recovery period, with a stabilization at elevated levels indicating consistent operating performance.
Return on Assets (ROA):
The ROA reflects similar but less pronounced growth, starting from low or negative levels in late 2020 (-1.04%) and climbing to a high of 13.46% in December 2023. The initial negative figure in December 2020 suggests a period of operational or market difficulties, followed by a recovery phase. The steady increase in ROA up to late 2023 indicates effective asset utilization and increasing profitability. Since then, the ratio has slightly contracted, reaching approximately 12.38% in June 2025, which could signify a moderation in earnings growth or increasing asset base without a proportional increase in net income.
Return on Total Capital:
This metric mirrors a positive trend with substantial growth from 8.82% in September 2020 to over 32% in late 2022 and into 2023, reflecting highly efficient use of both debt and equity capital in generating earnings. The ratio peaked at around 32.88% in March 2023 before gradually declining to 26.94% in June 2025. The decline suggests a reduction in overall capital efficiency, potentially due to increased capital base or diminishing marginal returns on new capital investments.
Return on Equity (ROE):
ROE followed a pattern of initial volatility, with a low of -2.65% at the end of 2020, then rising sharply in 2021, peaking above 24% in early 2023. This indicates strong profitability attributable to shareholders during this period, driven perhaps by improved operating margins and efficient leveraging. Since then, ROE has gradually decreased, settling around 21.27% to 21.31% in mid-2025. The decline reflects a normalization of profitability ratios and possibly increased equity or reduced leverage, tempering the high returns previously observed.
Overall, the profitability ratios suggest that Applied Industrial Technologies experienced a significant improvement in operational and asset efficiency following a period of volatility at the end of 2020. The company’s ability to generate higher returns on assets, capital, and equity over this period demonstrates strengthening profitability fundamentals. Nonetheless, recent data indicate a slight moderation in these ratios, potentially signaling a plateau in profit growth or the effects of expanded capital bases. This sustained, high level of profitability, with minor recent declines, indicates a period of robust operational efficiency, balanced with a normalization phase as the company continues its strategic positioning.