Applied Industrial Technologies (AIT)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,012,510 | 3,970,450 | 3,484,700 | 3,066,810 | 3,198,220 |
| Inventory | US$ in thousands | 488,258 | 501,184 | 449,821 | 362,547 | 389,150 |
| Inventory turnover | 8.22 | 7.92 | 7.75 | 8.46 | 8.22 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,012,510K ÷ $488,258K
= 8.22
The inventory turnover ratio for Applied Industrial Technologies has been relatively consistent over the past five years, ranging from 7.75 to 8.46 times. This indicates that the company is efficient in managing its inventory levels and converting them into sales. The highest turnover ratio was seen in June 2021 at 8.46, which means the company sold and replaced its inventory 8.46 times during that year. However, the ratio slightly decreased in the following years but still remained within a similar range.
Overall, the consistency of Applied Industrial Technologies' inventory turnover ratio suggests effective inventory management practices, ensuring that the company maintains optimal inventory levels to support its sales operations.