Applied Industrial Technologies (AIT)

The analysis of Applied Industrial Technologies' days of sales outstanding (DSO) over the specified period reveals a relatively stable collection cycle with only moderate fluctuations. As of June 30, 2021, the DSO was approximately 58.24 days, indicating that, on average, the company collected receivables within about 58 days. This measure increased to approximately 62.88 days by June 30, 2022, representing an upward shift in the average collection period and suggesting a temporary elongation in receivable turnover during that year.

Subsequently, by June 30, 2023, the DSO decreased slightly to approximately 58.59 days, returning near the 2021 level and indicating an improvement in receivables management or credit policies. However, by June 30, 2024, the DSO rose again to approximately 60.10 days, and further increased to about 61.56 days by June 30, 2025. These incremental increases suggest a trend toward a marginally longer collection cycle, though the DSO remains within a relatively narrow range of roughly 58 to 62 days across the analyzed years.

Overall, the company's DSO has demonstrated modest fluctuations but has remained within a stable range, reflecting consistent receivables management practices with no significant deterioration or improvement in collection efficiency over the period. The observed variations may be attributable to seasonal factors, customer mix changes, or minor policy adjustments but do not indicate any substantial shifts in the company’s credit or collection strategies.