Applied Industrial Technologies (AIT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 460,617 | 456,533 | 412,855 | 360,415 | 344,036 | 182,127 | 165,538 | 147,575 | 184,474 | 188,084 | 154,843 | 247,313 | 257,745 | 304,016 | 288,775 | 271,060 | 268,551 | 165,464 | 128,149 | 98,204 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 724,878 | 710,195 | 659,196 | 694,922 | 708,395 | 705,638 | 654,510 | 674,136 | 656,429 | 618,079 | 520,134 | 530,824 | 516,322 | 510,080 | 444,200 | 447,032 | 449,998 | 524,081 | 502,894 | 529,330 |
| 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 |
| Quick ratio | 2.37 | 2.49 | 2.39 | 2.26 | 1.95 | 1.85 | 1.83 | 1.82 | 1.68 | 1.74 | 1.69 | 1.67 | 1.81 | 1.75 | 1.72 | 1.73 | 1.69 | 1.54 | 1.50 | 1.31 |
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 a generally increasing trend over the past few quarters, indicating an improvement in the company's short-term liquidity position. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
As of June 30, 2024, the quick ratio stands at 2.37, reflecting that the company has $2.37 in quick assets available to cover each dollar of current liabilities. This implies a strong liquidity position and suggests that Applied Industrial Technologies can comfortably meet its short-term financial obligations.
The quick ratio has varied slightly over the quarters but has generally remained above 1.5, highlighting the company's consistent ability to cover its short-term liabilities with its liquid assets. This trend indicates efficient management of working capital and a reduced risk of financial distress due to potential liquidity issues.
Overall, the upward trajectory of the quick ratio for Applied Industrial Technologies signifies a healthy financial position and effective management of liquidity, which is essential for supporting ongoing operations and capitalizing on growth opportunities.