Applied Industrial Technologies (AIT)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 392,988 | 385,762 | 346,739 | 257,414 | 144,757 |
| Total assets | US$ in thousands | 3,175,540 | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 |
| ROA | 12.38% | 13.07% | 12.64% | 10.50% | 6.37% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $392,988K ÷ $3,175,540K
= 12.38%
The analysis of Applied Industrial Technologies' return on assets (ROA) over the specified period reveals a consistent upward trend from June 30, 2021, through June 30, 2024, followed by a slight decrease in the subsequent year. Specifically, the ROA increased from 6.37% on June 30, 2021, to 10.50% on June 30, 2022, representing a substantial improvement in the company's efficiency in generating earnings from its asset base. This upward trajectory continued, with the ROA reaching 12.64% on June 30, 2023, and further slightly increasing to 13.07% on June 30, 2024, indicating ongoing improvements in operational performance and asset utilization.
However, in the year following, the ROA declined marginally to 12.38% as of June 30, 2025. This slight decrease suggests a potential stabilization or minor setback in asset productivity or earnings generation efficiency, which may warrant further examination of underlying operational metrics or external factors affecting profitability.
Overall, the trend reflects a positive trajectory in Applied Industrial Technologies' ability to convert its assets into earnings over the analyzed period, with notable growth observed during the initial years and a minor reversal in the most recent period.