Applied Industrial Technologies (AIT)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 460,617 | 344,036 | 184,474 | 257,745 | 268,551 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 501,100 | 540,344 | 499,627 | 427,700 | 426,083 |
| Cash ratio | 0.92 | 0.64 | 0.37 | 0.60 | 0.63 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($460,617K
+ $—K)
÷ $501,100K
= 0.92
The cash ratio of Applied Industrial Technologies has shown a mixed trend over the past five years. In the most recent fiscal year ending June 30, 2024, the cash ratio increased to 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement from the previous year when the ratio was 0.64.
Looking back further, the cash ratio was 0.37 in June 30, 2022, showing a substantial increase compared to the prior year. However, in June 30, 2021, the ratio dipped to 0.60 before slightly decreasing to 0.63 in June 30, 2020.
Overall, while there have been fluctuations in Applied Industrial Technologies' cash ratio over the years, the recent increase to 0.92 suggests a healthier cash position relative to its current liabilities. This trend may indicate improved liquidity and the ability to cover short-term obligations more comfortably. Further analysis of the company's cash management practices and overall financial health could provide valuable insights into its cash ratio performance.