Applied Industrial Technologies (AIT)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,180,265 | 3,147,898 | 3,157,336 | 3,172,448 | 3,168,692 | 3,170,581 | 3,148,601 | 3,140,313 | 3,125,829 | 3,061,146 | 2,955,567 | 2,823,041 | 2,703,760 | 2,581,832 | 2,482,206 | 2,404,710 | 2,300,395 | 2,184,277 | 2,184,610 | 2,234,998 |
| Inventory | US$ in thousands | 505,337 | 500,562 | 518,044 | 497,568 | 488,258 | 503,910 | 520,155 | 507,641 | 501,184 | 526,978 | 523,021 | 490,099 | 449,821 | 425,373 | 399,763 | 377,978 | 362,547 | 358,237 | 363,757 | 365,355 |
| Inventory turnover | 6.29 | 6.29 | 6.09 | 6.38 | 6.49 | 6.29 | 6.05 | 6.19 | 6.24 | 5.81 | 5.65 | 5.76 | 6.01 | 6.07 | 6.21 | 6.36 | 6.35 | 6.10 | 6.01 | 6.12 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,180,265K ÷ $505,337K
= 6.29
The inventory turnover for Applied Industrial Technologies has demonstrated a relatively stable pattern over the specified periods, with fluctuations indicative of operational consistency. Starting from September 30, 2020, at 6.12, the ratio experienced minor decreases and increases, reflecting modest variations in inventory management efficiency. Notably, there was a slight decline to 5.76 by September 30, 2022, suggesting a marginal increase in average inventory levels relative to cost of goods sold, or a slowdown in inventory turnover during that interval.
Subsequently, the ratio exhibited an upward trend, reaching a peak of 6.49 on June 30, 2024. This increase indicates improved inventory management and more rapid conversion of inventory into sales during this period. The most recent data reflect a ratio of 6.29 on March 31, 2025, maintaining a level comparable to earlier periods, thus suggesting that the company has sustained efficient inventory turnover rates.
Overall, the inventory turnover ratio has remained within a range of approximately 5.65 to 6.49 throughout the analyzed timeframe, implying a stable approach to inventory management. The slight mid-period decline and subsequent rebound suggest operational adjustments or seasonal influences rather than structural changes. The current ratios indicate a consistently effective approach to inventory control, with no significant signs of overstocking or inventory obsolescence affecting the company's operational efficiency.