Applied Industrial Technologies (AIT)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,563,420 | 4,479,410 | 4,412,790 | 3,810,680 | 3,235,920 |
| Total current assets | US$ in thousands | 1,747,470 | 1,769,900 | 1,646,810 | 1,359,530 | 1,196,580 |
| Total current liabilities | US$ in thousands | 526,151 | 501,100 | 540,344 | 499,627 | 427,700 |
| Working capital turnover | 3.74 | 3.53 | 3.99 | 4.43 | 4.21 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,563,420K ÷ ($1,747,470K – $526,151K)
= 3.74
The working capital turnover ratio for Applied Industrial Technologies demonstrates a fluctuating trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 4.21 in 2021 to 4.43 in 2022, indicating an improvement in the efficiency with which the company utilizes its working capital to generate sales. However, subsequent years show a decline, with the ratio decreasing to 3.99 in 2023, further declining to 3.53 in 2024, before experiencing a modest uptick to 3.74 in 2025.
This overall pattern suggests that while the company initially enhanced its working capital efficiency in 2022, there has been a general downward trend in the subsequent years. The decline from 4.43 to 3.53 over this period may imply increasing challenges in converting working capital into sales or possible shifts in operational strategies, inventory management, or receivables collection. The slight recovery in 2025 could indicate an initial stabilization or improvement in working capital management.
In summary, the data portrays a period of initial efficiency gains followed by a gradual erosion of working capital utilization effectiveness, with a potential early sign of improvement at the end of the period analyzed.