Applied Industrial Technologies (AIT)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,747,470 | 1,769,900 | 1,646,810 | 1,359,530 | 1,196,580 |
| Total current liabilities | US$ in thousands | 526,151 | 501,100 | 540,344 | 499,627 | 427,700 |
| Current ratio | 3.32 | 3.53 | 3.05 | 2.72 | 2.80 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,747,470K ÷ $526,151K
= 3.32
The current ratio of Applied Industrial Technologies has exhibited a generally positive trend over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the current ratio stood at 2.80, indicating that the company's current assets were 2.8 times its current liabilities at that time. This ratio experienced a slight decline in the subsequent year, decreasing to 2.72 by June 30, 2022, which may suggest a marginal reduction in liquidity or an increase in current liabilities relative to current assets during that period.
However, from June 30, 2022, onward, the current ratio resumed an upward trajectory, reaching 3.05 by June 30, 2023. This growth continued appreciably to 3.53 as of June 30, 2024, signaling an improvement in the company's liquidity position and its ability to meet short-term obligations with its current assets. The ratio then experienced a slight decline to 3.32 by June 30, 2025, although it remains significantly above the generally accepted benchmark of 1.0, indicating a comfortable liquidity cushion.
Overall, the pattern of the current ratio suggests that Applied Industrial Technologies has maintained a strong liquidity position throughout this period, with a temporary dip followed by a robust rebound and subsequent stabilization. The fluctuations reflect prudent management of current assets and liabilities, with the ratio consistently indicating that the company's short-term financial health is well-maintained.