Applied Industrial Technologies (AIT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 388,417 | 352,842 | 303,441 | 538,520 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.74 | 0.74 | 0.71 | 1.13 | 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 |
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 of Applied Industrial Technologies has experienced notable fluctuations from September 30, 2020, through June 30, 2025. Initially, the ratio stood at 0.65, indicating that the company's cash and cash equivalents covered approximately 65% of its current liabilities at that time. Throughout the subsequent quarters, the cash ratio exhibited a gradual decline, reaching a low point of 0.33 as of September 30, 2022. This decrease suggests a period where the company's liquidity position in terms of cash relative to current liabilities weakened, potentially reflecting increased use of cash to fund operations, investments, or debt repayment.
Starting in late 2022, the cash ratio began a marked upward trajectory, with significant increases observed particularly from December 31, 2022, onward. By September 30, 2023, the ratio had risen to 0.77, indicating improved liquidity, and it continued to grow, reaching a peak of 1.13 as of September 30, 2024. The ratio exceeding 1 signifies that the company held more than enough cash to cover all current liabilities, pointing to a notably strong liquidity position during this period.
Subsequently, the ratio experienced a decline, falling back to 0.71 as of December 31, 2024, before rising again to 0.74 in the following quarters. Throughout the entire period, the cash ratio demonstrates significant positive momentum in recent years, suggesting enhancing liquidity strength, and occasionally surpassing the critical 1.0 threshold, which is generally viewed as an indicator of very conservative liquidity management.
Overall, the trend indicates initial moderate liquidity with some vulnerability during the 2021-2022 period, followed by a robust recovery and strengthening of cash reserves in 2023 and 2024. This pattern reflects a strategic shift toward maintaining higher cash levels in recent periods, which could be associated with better liquidity positioning or strategic cash management improvements.