Applied Industrial Technologies (AIT)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 392,988 | 388,643 | 386,061 | 383,999 | 385,762 | 374,486 | 374,456 | 363,685 | 346,739 | 333,637 | 304,756 | 281,325 | 257,414 | 237,545 | 225,302 | 162,942 | 144,757 | 115,502 | -23,338 | 20,027 |
| Total assets | US$ in thousands | 3,175,540 | 3,115,660 | 3,044,640 | 3,003,210 | 2,951,910 | 2,854,940 | 2,782,760 | 2,750,510 | 2,743,330 | 2,608,640 | 2,522,900 | 2,474,170 | 2,452,590 | 2,383,570 | 2,225,710 | 2,303,180 | 2,271,810 | 2,305,390 | 2,241,020 | 2,249,250 |
| 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% |
June 30, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $392,988K ÷ $3,175,540K
= 12.38%
The analysis of Applied Industrial Technologies’ return on assets (ROA) over the specified period illustrates a trajectory of growth and relative stability. Starting from a modest 0.89% as of September 30, 2020, the ROA experienced a significant decline to -1.04% by December 31, 2020, indicating that the company was less efficient in generating profit from its assets during that quarter, possibly due to operational or market challenges.
Subsequently, the ROA demonstrated a marked and steady recovery, reaching 5.01% as of March 31, 2021, and further improving to 6.37% by June 30, 2021. This upward trend continued through the subsequent quarters, with the ROA ascending to 7.07% in September 2021, and then accelerating to twin-digit levels, culminating at 10.12% by December 2021. This period signifies a substantial enhancement in asset utilization and profitability.
Throughout 2022, the ROA maintained an upward stance, inching from 9.97% in March to 10.50% in June, and surpassing 11% by September, reaching 12.08% at year-end. This increasing trend persisted into 2023, with ROA values of 12.79% in March, slightly decreasing to 12.64% in June, but then rising again to 13.22% as of September 2023. The peak observed is approximately 13.46% at the close of December 2023.
In the first half of 2024, the ROA exhibits minor fluctuations, registering at 13.12% in March and 13.07% in June, followed by a slight decline to 12.79% in September. The subsequent quarters show a gradual decline, settling at 12.68% by December 2024, and further decreasing slightly to 12.47% in March 2025, with a modest continuation at 12.38% by June 2025.
Overall, these figures depict a company that experienced a challenging start in late 2020, but successfully recovered and expanded its profitability relative to its assets over the subsequent years. Post-2022, the ROA remained relatively stable at elevated levels, indicating consistent efficiency in asset utilization and profitability generation, albeit with minor fluctuations toward the latter part of the observed period.