Applied Industrial Technologies (AIT)

The analysis of Applied Industrial Technologies' days of inventory on hand (DOH) over the fiscal years from June 30, 2021, through June 30, 2025, indicates fluctuations in inventory management efficiency.

In the fiscal year ending June 30, 2021, the DOH was approximately 57.52 days. This figure increased in the subsequent year, reaching approximately 60.72 days as of June 30, 2022, suggesting a lengthening of the inventory cycle and potentially indicating higher inventory levels or slower inventory turnover during that period. The trend then reverses slightly in the following year, with the DOH decreasing to approximately 58.52 days as of June 30, 2023.

Further, in the fiscal year ending June 30, 2024, DOH continued its decline to approximately 56.71 days, indicating an improvement in inventory efficiency, as inventory is held for a shorter duration on average. The subsequent year shows a minor increase to approximately 58.00 days, suggesting a stabilization or slight elongation in inventory holding periods.

Overall, the data exhibits a pattern of modest fluctuation in DOH, with a general trend towards slightly shorter inventory cycles in the most recent years compared to the peak in 2022. These movements may reflect strategic shifts in inventory management, supply chain efficiencies, or changes in demand patterns. The relatively stable DOH levels across the analyzed period imply that Applied Industrial Technologies has maintained a consistent approach to managing inventory relative to sales, with occasional adjustments resulting in incremental improvements or slight deteriorations in inventory turnover.