Applied Industrial Technologies (AIT)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,769,900 | 1,646,810 | 1,359,530 | 1,196,580 | 1,159,770 |
| Total current liabilities | US$ in thousands | 501,100 | 540,344 | 499,627 | 427,700 | 426,083 |
| Current ratio | 3.53 | 3.05 | 2.72 | 2.80 | 2.72 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,769,900K ÷ $501,100K
= 3.53
The current ratio of Applied Industrial Technologies has shown a positive trend over the past five years, indicating an improvement in the company's short-term liquidity position. The current ratio has consistently increased from 2.72 in 2020 to 3.53 in 2024. This suggests that the company has more current assets relative to its current liabilities, providing a buffer to meet its short-term obligations.
A current ratio above 1.0 generally indicates that a company can cover its short-term liabilities with its current assets. Applied Industrial Technologies' current ratios for each year have been well above 1.0, indicating a healthy liquidity position. The increase in the current ratio over the years also signals improved efficiency in managing current assets and liabilities.
Overall, a current ratio of 3.53 as of June 30, 2024, reflects that Applied Industrial Technologies has a strong ability to meet its short-term obligations and indicates a solid financial position in terms of liquidity.