Applied Industrial Technologies (AIT)
Payables 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 |
| Payables | US$ in thousands | 280,124 | 282,191 | 240,889 | 265,136 | 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 |
| Payables turnover | 11.35 | 11.16 | 13.11 | 11.97 | 11.87 | 11.69 | 12.41 | 12.09 | 10.36 | 11.09 | 11.80 | 10.18 | 10.42 | 10.43 | 12.19 | 11.40 | 11.05 | 10.05 | 11.12 | 12.31 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,180,265K ÷ $280,124K
= 11.35
The payables turnover ratio for Applied Industrial Technologies demonstrates a generally stable pattern over the analyzed period, with fluctuations indicative of slight variations in the company’s accounts payable management and procurement practices. Starting from a figure of 12.31 on September 30, 2020, the ratio experienced a moderate decline reaching a low of 10.05 by March 31, 2021. This initial decrease may reflect changes in supplier payment terms, an increase in accounts payable, or a strategic extension of payment periods during that period.
Subsequently, the ratio recovered to 11.40 by September 30, 2021, and further increased to 12.19 at the close of 2021, suggesting a normalization or tightening of payables management. During 2022, the ratio remained relatively consistent, fluctuating slightly around 10.43 to 11.80, with the December 2022 ratio of 11.80 representing a relative high point in that year’s trajectory.
In 2023, the ratio continued to hover around the 10.36 to 11.09 range, indicating steady payables management, with a modest upward trend toward 12.09 by September 2023. The ratio further increased into late 2023 and early 2024, reaching 12.41 at December 31, 2023, and then declining slightly to 11.69 by March 31, 2024. The trend shows a slight cyclical variation but remains within a relatively narrow band.
From mid-2024 onward, the ratio displayed a gradual upward movement, peaking at 13.11 on December 31, 2024. This increase suggests that the company might be extending its payment terms or experiencing changes in its liquidity and supplier relationships. The subsequent decline to 11.16 by March 2025, followed by a modest rise to 11.35 in June 2025, indicates ongoing adjustments in payables management without significant volatility.
Overall, the payables turnover ratio for Applied Industrial Technologies exhibits stability with periodic fluctuations, reflecting ongoing management of accounts payable within a controlled range. The ratios suggest a balanced approach to supplier payments, with occasional extensions of payables periods, consistent with strategic liquidity or operational considerations.