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Applied Industrial Technologies (Applied Industrial Technologies) Return-on-Tangible-Equity

: 48.55% (As of Dec. 2023)
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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Applied Industrial Technologies's annualized net income for the quarter that ended in Dec. 2023 was $365 Mil. Applied Industrial Technologies's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $752 Mil. Therefore, Applied Industrial Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 48.55%.

The historical rank and industry rank for Applied Industrial Technologies's Return-on-Tangible-Equity or its related term are showing as below:

AIT' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.71   Med: 56.32   Max: 550.68
Current: 58.79

During the past 13 years, Applied Industrial Technologies's highest Return-on-Tangible-Equity was 550.68%. The lowest was 10.71%. And the median was 56.32%.

AIT's Return-on-Tangible-Equity is ranked better than
86.62% of 142 companies
in the Industrial Distribution industry
Industry Median: 12 vs AIT: 58.79

Applied Industrial Technologies Return-on-Tangible-Equity Historical Data

The historical data trend for Applied Industrial Technologies's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Industrial Technologies Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity 550.68 120.17 70.76

Applied Industrial Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.99 74.97 61.23 55.31 48.55

Competitive Comparison

For the Industrial Distribution subindustry, Applied Industrial Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Industrial Technologies Return-on-Tangible-Equity Distribution

For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Applied Industrial Technologies's Return-on-Tangible-Equity falls into.



Applied Industrial Technologies Return-on-Tangible-Equity Calculation

Applied Industrial Technologies's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=346.739/( (335.56+644.47 )/ 2 )
=346.739/490.015
=70.76 %

Applied Industrial Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=364.912/( (712.536+790.841)/ 2 )
=364.912/751.6885
=48.55 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Applied Industrial Technologies  (NYSE:AIT) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Applied Industrial Technologies Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Applied Industrial Technologies's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Applied Industrial Technologies (Applied Industrial Technologies) Business Description

Traded in Other Exchanges
Address
1 Applied Plaza, Cleveland, OH, USA, 44115
Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. Fluid products include hydraulic, pneumatic, lubrication, and filtration systems and components. Applied Industrial Technologies operates primarily in North America, Australia, and New Zealand.
Executives
Neil A Schrimsher director, officer: President and CEO ONE APPLIED PLAZA, CLEVELAND OH 44115
Peter C Wallace director C/O ROBBINS & MYERS, INC., 51 PLUM STREET, SUITE 260, DAYTON OH 45440
Hoffner Warren E Iii officer: VP-General Mgr, Fluid Power ONE APPLIED PLAZA, CLEVELAND OH 44115
Kurt W. Loring officer: VP-Chief HR Officer ONE APPLIED PLAZA, CLEVELAND OH 44115
Mary Dean Hall director 4920 O'HEAR AVENUE, SUITE 400, NORTH CHARLESTON SC 29405
Jon S Ploetz officer: VP-General Counsel & Secretary ONE APPLIED PLAZA, CLEVELAND OH 44115
Fred D Bauer officer: VP-General Counsel & Secretary ONE APPLIED PLZ, CLEVELAND OH 44115-5056
Vincent K Petrella director
Shelly Marie Chadwick director 6070 PARKLAND BLVD, MAYFIELD HTS. OH 44124
Christopher Macey other: Corporate Controller 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Peter A Dorsman director
Jason W Vasquez officer: VP-Sales & Marketing-USSC ONE APPLIED PLAZA, CLEVELAND OH 44115
Jerry Sue Thornton director C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD, BASKING RIDGE NJ 07920
Madhuri A Andrews director 2525 STEMMONS FRWY, DALLAS TX 75207
Green Edith Kelly director 3131 DEMOCRAT ROAD BLDG B206, MEMPHIS TN 38118