Applied Industrial Technologies (AIT)

The payables turnover ratios for Applied Industrial Technologies over the designated periods exhibit some noteworthy trends and consistencies. At the end of the fiscal year June 30, 2021, the ratio stood at 11.05, indicating that the company was able to settle its accounts payable approximately 11 times within that year. This ratio experienced a slight decline the following year, decreasing to 10.42 by June 30, 2022, which suggests a marginal extension in the average period taken to pay suppliers or possibly a strategic shift in payment terms.

In the subsequent year, ending June 30, 2023, the payables turnover ratio remained relatively stable at 10.36, indicating that the company's payment cycle persisted with minimal deviation from the prior period. Moving forward, a notable increase is observed in the year ending June 30, 2024, where the ratio rose to 11.77. This uptick suggests an acceleration in the payables turnover, implying that the company was settling its liabilities more frequently within the fiscal year or perhaps benefitting from improved payment terms or negotiating faster settlement cycles.

The ratio slightly decreased again in the year ending June 30, 2025, to 11.35. Despite this minor decrease, the ratio remains elevated relative to the earlier periods, indicating that the company's payment frequency remains relatively high, and the payables cycle continues to be efficient, though not as aggressive as in the prior year.

Overall, the fluctuations in the payables turnover ratios reflect a company that generally maintains a stable and efficient approach to managing its accounts payable, with a notable peak in FY 2024. The ratios suggest a consistent ability to pay suppliers promptly, with some variation possibly influenced by changes in payment policies, supplier negotiations, or operational cash flow considerations.