Applied Industrial Technologies (AIT)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,180,260 | 3,142,750 | 3,125,830 | 2,703,760 | 2,300,400 |
| Inventory | US$ in thousands | 505,337 | 488,258 | 501,184 | 449,821 | 362,547 |
| Inventory turnover | 6.29 | 6.44 | 6.24 | 6.01 | 6.35 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,180,260K ÷ $505,337K
= 6.29
The inventory turnover ratio for Applied Industrial Technologies over the analyzed period indicates a relatively stable efficiency in managing inventory levels. As of June 30, 2021, the ratio stood at 6.35, reflecting the number of times inventory was sold and replaced during the fiscal year. This ratio declined modestly to 6.01 by June 30, 2022, suggesting a slight slowdown in inventory turnover, which could be attributed to factors such as increased inventory holdings or slower sales activity.
Subsequently, the ratio experienced a minor rebound, rising to 6.24 by June 30, 2023, indicating a return towards more efficient inventory utilization. The trend continued with a slight increase to 6.44 in the subsequent year ending June 30, 2024, before experiencing a marginal decrease to 6.29 as of June 30, 2025.
Overall, the inventory turnover has remained within a narrow range between approximately 6.01 and 6.44 over these years, suggesting a relatively steady approach to inventory management. The modest fluctuations imply that the company's inventory practices are consistent, with no significant shifts in operational efficiency or inventory holding periods during this period.