Applied Industrial Technologies (AIT)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 572,279 | 596,926 | 649,150 | 784,855 | 855,143 |
| Total assets | US$ in thousands | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 | 2,283,550 |
| Debt-to-assets ratio | 0.19 | 0.22 | 0.26 | 0.35 | 0.37 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $572,279K ÷ $2,951,910K
= 0.19
The debt-to-assets ratio of Applied Industrial Technologies has shown a decreasing trend over the past five years, indicating an improvement in the company's debt management and financial health. As of June 30, 2024, the ratio stands at 0.19, down from 0.22 in 2023, 0.26 in 2022, 0.35 in 2021, and 0.37 in 2020.
A lower debt-to-assets ratio suggests that Applied Industrial Technologies relies less on debt financing to fund its operations and investments, which may be seen as a positive sign by investors and creditors. It shows that a smaller portion of the company's assets is funded by debt, reducing the financial risk associated with high debt levels.
Overall, the decreasing trend in the debt-to-assets ratio of Applied Industrial Technologies reflects a prudent debt management strategy and an improved financial position, which could enhance the company's stability and ability to weather economic downturns.