Applied Industrial Technologies (AIT)
Payables 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 |
| Payables | US$ in thousands | 266,949 | 301,685 | 259,463 | 208,162 | 186,270 |
| Payables turnover | 15.03 | 13.16 | 13.43 | 14.73 | 17.17 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,012,510K ÷ $266,949K
= 15.03
The payables turnover ratio for Applied Industrial Technologies has exhibited some fluctuations over the past five years. The ratio indicates the efficiency at which the company pays off its suppliers. A higher ratio typically suggests that the company is able to manage its accounts payables effectively.
In the most recent fiscal year ending June 30, 2024, the payables turnover ratio stood at 15.03, reflecting an improvement compared to the previous year. This indicates that the company was able to pay off its suppliers approximately 15 times during the year, which could suggest effective cash management and favorable relationships with suppliers.
The trend over the five-year period shows some variability, with the ratio declining slightly from 17.17 in June 2020 to 13.16 in June 2023 before rebounding in the latest year. This suggests potential changes in the company's payment practices or its relationship with suppliers over this period.
Overall, the increasing payables turnover ratio in the most recent year could be viewed positively, indicating efficient accounts payable management. Analysts may further investigate the reasons behind the fluctuations in the ratio over the five-year period to gain insights into the company's financial health and operational efficiency.