Applied Industrial Technologies (AIT)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,159,770 | 1,162,520 | 1,142,560 | 1,144,920 |
| Total current liabilities | US$ in thousands | 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 | 426,083 | 447,861 | 420,701 | 478,722 |
| 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 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,477,680K ÷ ($1,769,900K – $501,100K)
= 3.53
The working capital turnover for Applied Industrial Technologies has fluctuated over the past few quarters, ranging from 3.44 to 5.14. Generally, a higher working capital turnover ratio indicates more efficient utilization of working capital to generate sales revenue.
Looking at the trend, the working capital turnover ratio peaked at 5.14 in the last quarter of 2019 and has been gradually decreasing since then, reaching a low of 3.44 in the first quarter of 2024. This suggests that the company may be experiencing some inefficiencies in managing its working capital during this period.
Despite the fluctuations, the working capital turnover has generally remained above 3, indicating that Applied Industrial Technologies has been able to generate sales revenue using its working capital effectively. However, management may need to focus on improving the efficiency of working capital utilization to potentially boost profitability and liquidity in the future.