Applied Industrial Technologies (AIT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,747,470 | 1,691,350 | 1,614,700 | 1,809,550 | 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 |
| 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 |
| Current ratio | 3.32 | 3.57 | 3.76 | 3.78 | 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 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,747,470K ÷ $526,151K
= 3.32
The analysis of Applied Industrial Technologies’ current ratio over the specified period reveals a consistent and generally favorable liquidity position. At the beginning of the observed timeframe, the current ratio stood at approximately 2.74 as of September 30, 2020. Throughout subsequent quarters, the ratio experienced minor fluctuations but maintained an overall robust level well above 2.0, indicating that the company consistently held more than twice the current assets necessary to cover its current liabilities.
Between September 2020 and September 2021, the ratio exhibited slight declines and increases but generally remained within a narrow range, fluctuating around 2.59 to 2.86. Notably, from September 2021 onward, the ratio demonstrated a steady upward trend, reaching a peak of approximately 3.78 as of September 30, 2024. This upward trajectory suggests an improvement in liquidity, with current assets increasingly surpassing current liabilities.
Across the subsequent quarters, the current ratio maintained comfortably above 3.0, indicating a strong liquidity buffer. This position persisted despite some minor cyclical variations, such as a slight decrease to 3.53 by June 30, 2024, and a minor dip to 3.52 in September 2023 before reaching its peak. The data reflects a consistent capacity of the company to meet its short-term obligations with its current assets, highlighting prudent liquidity management.
Overall, the stability and upward trend observed in Applied Industrial Technologies’ current ratio over the period imply sound short-term financial health. The company's liquidity position has been robust and improving, suggesting that it possesses ample short-term assets relative to its short-term liabilities, thereby providing a cushion against liquidity risks and supporting operational flexibility.