Applied Industrial Technologies (AIT)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 460,617 | 344,036 | 184,474 | 257,745 | 268,551 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 724,878 | 708,395 | 656,429 | 516,322 | 449,998 |
| Total current liabilities | US$ in thousands | 501,100 | 540,344 | 499,627 | 427,700 | 426,083 |
| Quick ratio | 2.37 | 1.95 | 1.68 | 1.81 | 1.69 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($460,617K
+ $—K
+ $724,878K)
÷ $501,100K
= 2.37
The quick ratio of Applied Industrial Technologies has shown fluctuations over the past five years. The quick ratio has steadily increased from 1.69 in 2020 to 2.37 in 2024. This indicates an improvement in the company's ability to cover its immediate liabilities with its most liquid assets.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations. Applied Industrial Technologies quick ratio has consistently been above 1 in the past five years, demonstrating a strong liquidity position.
The significant increase in the quick ratio from 2020 to 2024 suggests that the company has enhanced its ability to meet its short-term liabilities without relying heavily on inventory. This may be attributed to efficient management of current assets and liabilities, which is a positive indicator for investors and creditors.
Overall, the increasing trend in Applied Industrial Technologies' quick ratio indicates an improvement in its liquidity position and suggests that the company is well-positioned to meet its short-term financial obligations.