Applied Industrial Technologies (AIT)
Debt-to-assets 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Long-term debt | US$ in thousands | 572,279 | 571,862 | 571,854 | 596,883 | 596,926 | 597,006 | 624,052 | 649,103 | 649,150 | 681,197 | 681,266 | 730,307 | 784,855 | 773,404 | 783,076 | 792,827 | 855,143 | 864,758 | 874,423 | 859,172 |
Total assets | US$ in thousands | 2,951,910 | 2,854,940 | 2,782,760 | 2,750,510 | 2,743,330 | 2,608,640 | 2,522,900 | 2,474,170 | 2,452,590 | 2,383,570 | 2,225,710 | 2,303,180 | 2,271,810 | 2,305,390 | 2,241,020 | 2,249,250 | 2,283,550 | 2,289,530 | 2,419,000 | 2,429,730 |
Debt-to-assets ratio | 0.19 | 0.20 | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | 0.32 | 0.35 | 0.34 | 0.35 | 0.35 | 0.37 | 0.38 | 0.36 | 0.35 |
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 for Applied Industrial Technologies has exhibited a generally increasing trend over the past few periods, indicating a higher proportion of debt relative to assets. In the latest period, as of June 30, 2024, the ratio stood at 0.19, which suggests that 19% of the company's assets are financed through debt.
The gradual increase in the debt-to-assets ratio from 0.19 in June 2024 to 0.35 in March 2021 could indicate a growing reliance on debt financing to support the company's operations and growth strategies. However, it is worth noting that the ratio seems to have stabilized around the 0.35 level in the more recent periods, suggesting a possible shift towards a more conservative approach to leverage.
A debt-to-assets ratio of around 0.35 means that 35% of Applied Industrial Technologies' assets are funded by debt, while the remaining 65% are financed by equity. This ratio provides insight into the company's capital structure and financial risk, with lower ratios generally considered less risky as they indicate a lower debt burden.
Overall, while the increasing trend in the debt-to-assets ratio may raise concerns about the company's financial leverage, the recent stabilization may indicate a deliberate effort to manage debt levels and maintain a balanced capital structure. Further analysis of the company's overall financial health and profitability metrics would be necessary to assess the impact of the debt levels on its long-term sustainability.