Applied Industrial Technologies (AIT)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 6.18 6.29 6.75 6.37 6.19 6.08 6.32 5.87 5.77 5.85 6.68 6.31 6.20 5.94 6.81 6.94 7.14 6.43 6.80 6.47
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
Working capital turnover 3.53 3.44 3.61 3.76 3.97 4.18 4.25 4.21 4.40 4.35 4.67 4.50 4.17 3.99 4.17 4.30 4.38 4.71 4.73 5.14

Applied Industrial Technologies shows relatively consistent inventory turnover ratios over the past few periods, averaging around 7.5 to 8 times per year. This indicates that the company is effectively managing its inventory levels and converting them into sales efficiently.

The receivables turnover ratio has fluctuated but generally remained within the range of 6 to 7 times per year. This suggests that the company is collecting its receivables in a reasonable timeframe, although there may be some variability in the collection efficiency from quarter to quarter.

The payables turnover ratio has also shown some variability, ranging from around 13 to 17 times per year. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may have implications for cash flow management and supplier relationships.

The working capital turnover ratio has remained relatively stable around 4 times per year, indicating that the company is efficiently utilizing its working capital to generate sales. This metric reflects the company's ability to generate revenue using its current assets and liabilities effectively.

Overall, Applied Industrial Technologies appears to be effectively managing its activity ratios, translating its operational activities into sales and maintaining a generally efficient working capital cycle. Further analysis and comparison with industry benchmarks would provide additional insights into the company's performance in these areas.

Average number of days

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
Days of inventory on hand (DOH) days 44.57 45.87 47.59 46.63 46.25 49.64 50.84 49.59 47.33 46.60 45.41 43.48 43.35 44.81 43.39 43.35 44.71 46.45 52.03 52.14
Days of sales outstanding (DSO) days 59.09 58.01 54.08 57.31 58.93 60.03 57.72 62.21 63.31 62.37 54.61 57.86 58.83 61.41 53.63 52.56 51.14 56.80 53.71 56.41
Number of days of payables days 24.37 24.69 23.21 23.87 27.84 26.00 24.34 28.05 27.30 27.13 23.12 24.27 24.89 27.18 23.43 21.55 21.40 23.63 23.83 25.71

The activity ratios of Applied Industrial Technologies, as indicated by the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the company's efficiency in managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH) measures how many days on average it takes for the company to sell its inventory. Applied Industrial Technologies has shown a fluctuating trend in its DOH over the last few quarters, ranging from 43.35 days to 52.14 days. A lower DOH indicates better inventory management, as the company is selling its inventory faster. However, the company's DOH has been trending upwards, which may suggest potential issues in inventory turnover and liquidity.

2. Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect its accounts receivable. Applied Industrial Technologies has experienced varying DSO figures, ranging from 51.14 days to 63.31 days. A lower DSO signifies a more efficient collection process, while a higher DSO indicates potential difficulties in collecting receivables. The company has shown a slightly improving trend in DSO over the recent quarters, suggesting better management of accounts receivable.

3. Number of Days of Payables reflects how long it takes for the company to pay its suppliers. Applied Industrial Technologies has maintained a relatively stable pattern in its payables days, fluctuating between 21.40 days to 28.05 days. A longer period of payables indicates that the company is taking longer to pay its suppliers, which can sometimes imply better cash flow management. However, an excessively long time can strain relationships with suppliers. Overall, the company has managed its payables days within a reasonable range.

In conclusion, Applied Industrial Technologies should closely monitor its inventory turnover, accounts receivable collection, and payment practices to ensure efficient operations and optimized cash flow.

Long-term

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
Fixed asset turnover 37.78 38.75 39.13 38.93 38.14 37.19 36.70 35.78 33.82 32.54 31.01 29.42 27.72 25.92 25.08 25.81 26.34 27.21 27.07 27.38
Total asset turnover 1.52 1.57 1.60 1.61 1.60 1.64 1.64 1.60 1.54 1.52 1.56 1.45 1.41 1.31 1.35 1.38 1.41 1.47 1.41 1.41

The fixed asset turnover ratio for Applied Industrial Technologies has been relatively stable over the past few quarters, ranging between 25.08 and 39.13. This indicates the company's efficiency in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also been consistent, ranging between 1.31 and 1.64. This ratio reflects how efficiently the company is generating sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio generally indicates better asset utilization and management.

Overall, the stable and relatively high fixed asset turnover along with consistent total asset turnover ratios suggest that Applied Industrial Technologies is effectively using its assets to generate sales revenue. This is a positive sign as it indicates operational efficiency and effective resource utilization within the company.