Applied Industrial Technologies (AIT)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 388,417 | 460,617 | 344,036 | 184,474 | 257,745 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 526,151 | 501,100 | 540,344 | 499,627 | 427,700 |
| Cash ratio | 0.74 | 0.92 | 0.64 | 0.37 | 0.60 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($388,417K
+ $—K)
÷ $526,151K
= 0.74
The cash ratio for Applied Industrial Technologies shows notable fluctuations over the period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the cash ratio was 0.60, indicating that cash and cash equivalents covered approximately 60% of current liabilities, suggesting a moderate liquidity cushion. By the subsequent year, June 30, 2022, the ratio declined to 0.37, reflecting a decrease in immediate liquidity relative to current liabilities, which may imply either increased short-term obligations or a reduction in cash reserves.
However, the trend reverses significantly in the following year, with the cash ratio increasing to 0.64 as of June 30, 2023. This indicates an improved capacity to satisfy current liabilities with cash holdings, approaching close to two-thirds coverage. The appreciable rise continues into June 30, 2024, reaching a peak of 0.92, where cash and cash equivalents nearly match current liabilities, signifying an exceptional short-term liquidity position. Such a high ratio underscores a conservative liquidity approach, with ample cash reserves to meet immediate obligations without dependence on other current assets.
In the most recent period analyzed, ending June 30, 2025, the cash ratio decreases slightly to 0.74. While still indicating a strong liquidity position, this decrease suggests a modest reduction in cash relative to current liabilities but remains substantially high compared to earlier years. Overall, the trend delineates a pattern of liquidity management whereby Applied Industrial Technologies, at its peak in 2024, maintained nearly complete coverage of current liabilities with cash, and although the ratio declined slightly afterward, it still reflects a robust liquidity stance in the context of industry standards.
In summary, the cash ratio exhibits a significant strengthening in liquidity from 2022 onward, culminating in a near-cash coverage of current liabilities in 2024, followed by a slight moderation in 2025, yet maintaining a strong liquidity profile through the analyzed period.