Applied Industrial Technologies (AIT)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,477,670 | 4,387,870 | 3,784,480 | 3,203,600 | 3,212,740 |
| Receivables | US$ in thousands | 724,878 | 708,395 | 656,429 | 516,322 | 449,998 |
| Receivables turnover | 6.18 | 6.19 | 5.77 | 6.20 | 7.14 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,477,670K ÷ $724,878K
= 6.18
The receivables turnover ratio measures how efficiently a company collects outstanding accounts receivable during a specific period. Applied Industrial Technologies has demonstrated consistent performance in this area over the past five years.
The company's receivables turnover ratio for the most recent fiscal year ending June 30, 2024, was 6.18. This indicates that, on average, Applied Industrial Technologies converted its accounts receivable into cash approximately 6.18 times throughout the year.
Comparing this figure to previous years, there has been a slight decrease from the ratio of 6.19 in 2023 and 6.20 in 2021. However, it is important to note that these ratios are relatively close to each other, suggesting a stable collection process.
Furthermore, the receivables turnover ratio of 6.18 in 2024 is higher than the ratio of 5.77 in 2022, indicating an improvement in the efficiency of collecting receivables compared to that year.
Overall, Applied Industrial Technologies has maintained a healthy receivables turnover ratio over the past five years, demonstrating consistent effectiveness in managing its accounts receivable and converting them into cash efficiently.