Applied Industrial Technologies (AIT)
Payables 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 |
| Payables | US$ in thousands | 266,949 | 271,185 | 253,739 | 259,790 | 301,685 | 276,024 | 250,407 | 277,224 | 259,463 | 247,639 | 203,563 | 210,987 | 208,162 | 217,252 | 196,468 | 181,627 | 186,270 | 214,253 | 212,312 | 229,368 |
| Payables turnover | 14.98 | 14.79 | 15.72 | 15.29 | 13.11 | 14.04 | 14.99 | 13.01 | 13.37 | 13.45 | 15.79 | 15.04 | 14.67 | 13.43 | 15.58 | 16.94 | 17.06 | 15.45 | 15.32 | 14.20 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,998,290K ÷ $266,949K
= 14.98
The payables turnover ratio for Applied Industrial Technologies has been relatively stable over the past few quarters, reflecting the company's efficiency in managing its accounts payable. The ratio has ranged between 13.01 and 17.06 times over the last two years, with an average of around 14.90 times.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could imply strong vendor relationships or effective cash flow management. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships.
Applied Industrial Technologies' payables turnover ratio has generally been on the higher side, which could indicate a proactive approach to managing its financial obligations. However, it is essential to consider other factors and trends in conjunction with this ratio to gain a comprehensive understanding of the company's financial health and operational efficiency.