Applied Industrial Technologies (AIT)

Working capital 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
Revenue (ttm) US$ in thousands 4,563,420 4,499,370 4,479,010 4,483,160 4,479,410 4,476,800 4,462,450 4,445,580 4,412,790 4,316,180 4,164,802 3,981,396 3,810,677 3,645,105 3,505,380 3,379,793 3,235,919 3,065,107 3,054,967 3,137,055
Total current assets US$ in thousands 1,747,470 1,691,350 1,614,700 1,809,550 1,769,900 1,767,680 1,681,990 1,644,260 1,646,810 1,506,740 1,422,250 1,390,500 1,359,530 1,295,040 1,143,620 1,210,570 1,196,580 1,226,360 1,151,600 1,136,330
Total current liabilities US$ in thousands 526,151 474,190 429,440 478,300 501,100 468,406 449,126 466,558 540,344 480,592 447,205 451,263 499,627 464,356 399,855 466,827 427,700 465,746 425,867 414,051
Working capital turnover 3.74 3.70 3.78 3.37 3.53 3.45 3.62 3.77 3.99 4.21 4.27 4.24 4.43 4.39 4.71 4.54 4.21 4.03 4.21 4.34

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,563,420K ÷ ($1,747,470K – $526,151K)
= 3.74

The analysis of Applied Industrial Technologies' working capital turnover from September 2020 through June 2025 reveals a general trend of gradual decline over the observed periods. Initially, the ratio was relatively high at 4.34 as of September 30, 2020, indicating that the company generated approximately 4.34 units of sales for each unit of working capital. Subsequent quarters depict slight fluctuations within a range of approximately 4.03 to 4.71, with intermittent increases and decreases, but no sustained trend of growth.

Post-December 2021, the ratio exhibits a downward trajectory, reaching values below 4.00—specifically, 3.99 as of June 2023, and further decreasing to 3.77 by September 2023. This decline suggests that the company is generating slightly less sales relative to its working capital over time, potentially indicating a reduction in operational efficiency or changes in working capital management.

Between the March 2024 and June 2025 periods, the ratio demonstrates minor cyclical fluctuations, rising from 3.45 to a peak of 3.78 and then stabilizing around the 3.70 to 3.74 level. The overall trend across this timeframe indicates a modest decline in working capital turnover, reflecting a trend of decreasing efficiency in utilizing working capital to generate sales.

In summary, the data illustrates that Applied Industrial Technologies has experienced a gradual softening of working capital efficiency over the analyzed period. While short-term variations are present, the overarching pattern suggests a cautious decline in the ratio, which may warrant further investigation into underlying operational or financial factors affecting working capital management.