Applied Industrial Technologies (AIT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,844,520 | 1,827,480 | 1,793,510 | 1,752,080 | 1,688,780 | 1,669,020 | 1,608,030 | 1,536,120 | 1,458,440 | 1,380,660 | 1,295,880 | 1,221,440 | 1,149,360 | 1,098,390 | 1,021,690 | 976,570 | 932,546 | 934,907 | 880,707 | 885,406 |
| 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $392,988K ÷ $1,844,520K
= 21.31%
The analysis of Applied Industrial Technologies' return on equity (ROE) from September 30, 2020, through June 30, 2025, reveals notable fluctuations and an overarching trend indicative of the company's financial performance over this period.
In the fiscal fourth quarter of 2020, ROE exhibited a significant decline to -2.65%, marking a period of negative profitability relative to shareholders' equity. This negative figure suggests that the company was incurring losses or experiencing substantial challenges during that quarter. However, starting from March 31, 2021, a marked reversal was observed, with ROE increasing sharply to 12.35%, signifying enhanced profitability and improved operational efficiency.
Throughout 2021, ROE demonstrated consistent growth, reaching 16.69% by September 30 and further culminating at 22.05% by the end of the year. This upward trajectory indicates that the company was effectively increasing net income relative to shareholders' equity, possibly due to improved sales, cost management, or strategic initiatives.
The upward momentum persisted into 2022, with ROE maintaining levels above 21%, peaking at around 23.03% in September 2022. This stability suggests a period of sustained operational strength and efficient use of shareholders' equity to generate earnings.
During 2023, use of shareholders' equity continued to produce solid returns, with ROE reaching a peak of 24.17% in March before gradually declining slightly to approximately 23.29% by the end of December. This slight decline indicates a modest decrease in profitability or changes in equity position, but the level remains relatively high, signifying continued strong performance.
In the subsequent periods, ROE displayed minor fluctuations around the low-to-mid 22% range, with values at 22.44% in March 2024 and decreasing slightly to 21.92% by September 2024. The trend persisted with the ROE slightly declining further to 21.27% in March 2025 before marginally increasing to 21.31% in June 2025.
Overall, the data depicts a company that experienced a severe setback in late 2020 but subsequently recovered robustly, maintaining high levels of ROE throughout 2021 and 2022. The subsequent years have shown minor fluctuations, with ROE generally remaining above 21%, indicative of sustained profitability and effective management of shareholders’ equity in generating net income.