Applied Industrial Technologies (AIT)

The quick ratio of Applied Industrial Technologies has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company maintained a quick ratio of 1.81, indicating that it possessed approximately $1.81 in liquid assets for every dollar of current liabilities, reflecting a healthy liquidity position. This ratio decreased to 1.68 by June 30, 2022, suggesting a slight decline in liquidity, although the company continued to maintain enough liquid assets to cover its short-term obligations comfortably.

Subsequently, there was an upward trend observed by June 30, 2023, when the quick ratio increased to 1.95. This enhancement implies an improvement in liquidity, with the company augmenting its liquid assets relative to current liabilities. The ratio further increased to 2.39 by June 30, 2024, representing a substantial strengthening of the company's short-term liquidity position. This level indicates a robust cushion of liquid assets, providing a comfortable safety margin against immediate liabilities.

However, by June 30, 2025, the quick ratio experienced a slight decline to 2.20. Despite this reduction, the ratio remained above 2.0, which generally indicates a strong liquidity position, suggesting the company continues to possess ample liquid assets relative to its current liabilities.

Overall, the trend in Applied Industrial Technologies' quick ratio reflects periods of relative stability intertwined with phases of strengthening liquidity. The fluctuations may be attributable to variations in accounts receivable, inventory management, or short-term borrowing, but the company's overall liquidity profile remains solid, with ratios well above the common threshold of 1.0, indicating a capacity to meet short-term obligations without reliance on inventory sales.