Applied Industrial Technologies (AIT)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,477,680 | 4,468,470 | 4,448,790 | 4,426,120 | 4,387,880 | 4,290,680 | 4,139,067 | 3,955,317 | 3,784,475 | 3,617,133 | 3,476,550 | 3,348,724 | 3,203,604 | 3,031,543 | 3,023,222 | 3,104,634 | 3,211,463 | 3,367,816 | 3,417,756 | 3,424,973 |
| Receivables | US$ in thousands | 724,878 | 710,195 | 659,196 | 694,922 | 708,395 | 705,638 | 654,510 | 674,136 | 656,429 | 618,079 | 520,134 | 530,824 | 516,322 | 510,080 | 444,200 | 447,032 | 449,998 | 524,081 | 502,894 | 529,330 |
| 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 |
June 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,477,680K ÷ $724,878K
= 6.18
The receivables turnover ratio for Applied Industrial Technologies has shown some fluctuations over the past few quarters. This ratio indicates how efficiently the company is collecting on its credit sales. A higher turnover ratio is generally more favorable as it suggests that the company is collecting its outstanding receivables more quickly.
Looking at the trend in Applied Industrial Technologies' receivables turnover, we can see that the ratio has ranged from a low of 5.77 to a high of 7.14 over the past few quarters. The average turnover ratio during this period is approximately 6.39, indicating that, on average, the company is collecting on its receivables about 6.39 times a year.
The fluctuations in the receivables turnover ratio may be influenced by various factors such as changes in credit policies, customer payment behavior, economic conditions, or industry trends. It is important for the company to closely monitor and analyze these factors to ensure efficient management of its accounts receivable.
Overall, while the receivables turnover ratio for Applied Industrial Technologies has shown some variability, it remains relatively stable around the industry average. Continued monitoring and analysis of this ratio will be essential for the company to maintain healthy cash flow and financial stability.