Applied Industrial Technologies (AIT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 460,617 | 456,533 | 412,855 | 360,415 | 344,036 | 182,127 | 165,538 | 147,575 | 184,474 | 188,084 | 154,843 | 247,313 | 257,745 | 304,016 | 288,775 | 271,060 | 268,551 | 165,464 | 128,149 | 98,204 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.92 | 0.97 | 0.92 | 0.77 | 0.64 | 0.38 | 0.37 | 0.33 | 0.37 | 0.41 | 0.39 | 0.53 | 0.60 | 0.65 | 0.68 | 0.65 | 0.63 | 0.37 | 0.30 | 0.21 |
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 fluctuating levels over the past few quarters. The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
From the data provided, we can observe that the cash ratio ranged from 0.21 to 0.97 during the period analyzed. The cash ratio hit a low point of 0.21 in the first quarter of 2020, indicating a relatively weaker liquidity position at that time. However, there has been a general upward trend in the cash ratio since then, reaching a peak of 0.97 in the first quarter of 2024.
The most recent cash ratio of 0.92 as of June 30, 2024, suggests that the company has a sufficient level of cash and cash equivalents to cover its short-term liabilities. This indicates an improvement in the company's liquidity position compared to the lower ratios observed in the past. It is important for companies to maintain a healthy cash ratio to ensure they can meet their financial obligations in a timely manner.
Overall, the trend in Applied Industrial Technologies' cash ratio shows a strengthening liquidity position over the periods analyzed, which is a positive indication of the company's ability to manage its short-term financial commitments.