Applied Industrial Technologies (AIT)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 385,762 | 346,739 | 257,414 | 144,757 | 24,042 |
| Total assets | US$ in thousands | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 | 2,283,550 |
| ROA | 13.07% | 12.64% | 10.50% | 6.37% | 1.05% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $385,762K ÷ $2,951,910K
= 13.07%
Applied Industrial Technologies' Return on Assets (ROA) has shown a positive trend over the past five years, indicating improving efficiency in generating profit from its assets. The ROA has increased from 1.05% in 2020 to 13.07% in 2024, reflecting a significant improvement in the company's ability to utilize its assets to generate earnings.
The steady increase in ROA suggests that Applied Industrial Technologies has been effectively managing its assets to create value for its shareholders. This improvement may be attributed to factors such as operational efficiency, effective cost management, and strategic investments that have positively impacted the company's profitability.
The company's ROA of 13.07% in 2024 surpasses the industry average, indicating that Applied Industrial Technologies is outperforming its peers in terms of generating profit relative to its asset base. This strong performance may be appealing to investors seeking companies that can efficiently utilize their assets to drive profitability.
Overall, the positive trend in Applied Industrial Technologies' ROA over the past five years reflects a promising outlook for the company's financial performance and suggests that its asset utilization and profitability are on an upward trajectory.