Applied Industrial Technologies (AIT)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.93 | 5.96 | 6.43 | 6.48 | 6.07 | 6.17 | 6.77 | 6.40 | 6.23 | 6.12 | 6.36 | 5.91 | 5.81 | 5.90 | 6.74 | 6.37 | 6.27 | 6.01 | 6.88 | 7.02 | |
| DSO | days | 61.56 | 61.22 | 56.74 | 56.30 | 60.10 | 59.14 | 53.92 | 57.06 | 58.59 | 59.67 | 57.36 | 61.80 | 62.88 | 61.89 | 54.16 | 57.33 | 58.24 | 60.74 | 53.07 | 52.01 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.93
= 61.56
The analysis of Applied Industrial Technologies' days of sales outstanding (DSO) over the specified period indicates a relatively stable receivables collection cycle with moderate fluctuations. At the start of the observed timeframe, the DSO was approximately 52 days as of September 30, 2020. This figure experienced a gradual increase, reaching peaks of around 62.88 days on June 30, 2022, and 61.56 days projected for June 30, 2025.
Throughout 2021, the DSO fluctuated within a range of approximately 54 to 61 days, reflecting a consistent collection period amid minor variations. Notably, there was a slight decline toward the end of 2021, with the DSO falling to approximately 54.16 days by December 31, 2021, before rising again in the subsequent period. The trend continued into 2022, with the DSO maintaining an upward trajectory, peaking near 62.88 days in June 2022.
From late 2022 onwards, a downward trend is observed, with the DSO decreasing to around 57.36 days by December 2022. This decline persisted into 2023, with the DSO stabilizing in the high 50s, reaching approximately 57.06 days as of September 30, 2023. These figures suggest an improvement in receivables collection efficiency relative to the earlier peaks.
Projections into 2024 and 2025 exhibit slight increases, with DSO figures hovering around 60 days, specifically approximately 60.10 days as of June 30, 2024, and around 61.56 days projected for June 2025. These projections indicate potential for a modest elongation in collection periods, possibly reflecting seasonal or operational factors.
Overall, the DSO has exhibited periods of escalation and subsequent stabilization, suggesting that while there were episodes of lengthened collection cycles, the company generally maintains a receivables management process within a moderate range. The observed fluctuations may be attributable to changes in credit policies, customer mix, or economic conditions impacting collection efficiency. The recent trend toward stabilization around the high 50s days indicates a relatively consistent collection period, which aligns with industry norms for companies operating within the industrial distribution sector.