Applied Industrial Technologies (AIT)
Inventory turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,998,290 | 4,009,700 | 3,989,640 | 3,973,284 | 3,954,961 | 3,874,919 | 3,754,618 | 3,607,112 | 3,468,722 | 3,331,618 | 3,213,269 | 3,172,776 | 3,052,813 | 2,917,829 | 3,060,106 | 3,076,532 | 3,176,919 | 3,309,817 | 3,252,004 | 3,256,447 |
| Inventory | US$ in thousands | 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 | 389,150 | 421,201 | 463,609 | 465,165 |
| Inventory turnover | 8.19 | 7.96 | 7.67 | 7.83 | 7.89 | 7.35 | 7.18 | 7.36 | 7.71 | 7.83 | 8.04 | 8.39 | 8.42 | 8.14 | 8.41 | 8.42 | 8.16 | 7.86 | 7.01 | 7.00 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,998,290K ÷ $488,258K
= 8.19
The inventory turnover of Applied Industrial Technologies has shown fluctuations over the past few quarters, ranging from a low of 7.00 in the first quarter of 2020 to a high of 8.42 in the fourth quarter of 2020 and the first quarter of 2021. This ratio indicates how efficiently the company is managing its inventory by selling and replenishing it within a given period.
On average, the company's inventory turnover appears to be relatively stable, with the most recent data showing a turnover of 8.19 for the second quarter of fiscal year 2024. A higher inventory turnover ratio generally suggests that the company is effectively selling its inventory and restocking it efficiently.
It's worth noting that despite some fluctuations, Applied Industrial Technologies has maintained a relatively healthy inventory turnover ratio, indicating effective inventory management practices. However, it may be beneficial for the company to continue monitoring and optimizing its inventory turnover to ensure optimal inventory levels and efficient operations.