Applied Industrial Technologies (AIT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,769,900 | 1,767,680 | 1,681,990 | 1,644,260 | 1,646,810 | 1,506,740 | 1,422,250 | 1,390,500 | 1,359,530 | 1,295,040 | 1,143,620 | 1,210,570 | 1,196,580 | 1,226,360 | 1,151,600 | 1,136,330 | 1,159,770 | 1,162,520 | 1,142,560 | 1,144,920 |
| 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 |
| Current ratio | 3.53 | 3.77 | 3.75 | 3.52 | 3.05 | 3.14 | 3.18 | 3.08 | 2.72 | 2.79 | 2.86 | 2.59 | 2.80 | 2.63 | 2.70 | 2.74 | 2.72 | 2.60 | 2.72 | 2.39 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,769,900K ÷ $501,100K
= 3.53
Applied Industrial Technologies' current ratio has shown variability over the past several quarters, ranging from a low of 2.39 to a high of 3.77. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position and ability to meet short-term obligations.
The current ratio has generally trended upwards from 2.39 in December 2019 to 3.77 in March 2024. This improvement suggests that the company has increased its ability to meet its short-term obligations with its current assets. The current ratio exceeding 3.0 in recent quarters indicates that Applied Industrial Technologies has a healthy liquidity position.
However, the slight decrease in the current ratio from 3.77 in March 2024 to 3.53 in June 2024 may suggest a potential decrease in liquidity or increased short-term obligations. It is important to monitor this trend in the upcoming quarters to assess whether it is a temporary fluctuation or a more sustained shift in the company's liquidity position.
Overall, while the current ratio of Applied Industrial Technologies remains above 3.0, indicating a strong liquidity position, investors and analysts should continue to closely monitor changes in the current ratio to assess the company's ability to meet its short-term obligations effectively.