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.