Applied Industrial Technologies (AIT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,688,780 | 1,458,440 | 1,149,360 | 932,546 | 843,542 |
| ROE | 22.84% | 23.77% | 22.40% | 15.52% | 2.85% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $385,762K ÷ $1,688,780K
= 22.84%
Applied Industrial Technologies has shown consistent improvement in its Return on Equity (ROE) over the past five years. The ROE has increased from 2.85% in 2020 to 22.84% in 2024, indicating a significant improvement in the company's profitability and efficiency in generating returns for its shareholders.
The upward trend in ROE reflects positively on the company's ability to effectively utilize its equity to generate profits. This increase in ROE suggests that Applied Industrial Technologies has been able to better leverage its assets and effectively manage its costs and expenses over the years.
The company's ROE of 22.84% in 2024 indicates that for each dollar of shareholders' equity invested, Applied Industrial Technologies generated a return of 22.84%. This performance is particularly commendable compared to the industry average and demonstrates the company's strong financial performance and value creation for shareholders.
Overall, the improving trend in ROE for Applied Industrial Technologies reflects positively on the company's financial health, profitability, and overall efficiency in managing its assets and equity to generate superior returns for its shareholders.