Applied Industrial Technologies (AIT)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,688,780	1,669,020	1,608,030	1,536,120	1,458,440	1,380,660	1,295,880	1,221,440	1,149,360	1,098,390	1,021,690	976,570	932,546	934,907	880,707	885,406	843,542	830,560	962,241	927,225
Debt-to-capital ratio		0.25	0.26	0.26	0.28	0.29	0.30	0.33	0.35	0.36	0.38	0.40	0.43	0.46	0.45	0.47	0.47	0.50	0.51	0.48	0.48

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $572,279K ÷ ($572,279K + $1,688,780K)
= 0.25

The debt-to-capital ratio of Applied Industrial Technologies has shown a general upward trend over the past few quarters, indicating an increasing level of debt relative to the company's total capital. The ratio increased from 0.25 in June 2020 to 0.51 in March 2022, and has fluctuated around this level since then.

The upward trend in the debt-to-capital ratio may suggest that Applied Industrial Technologies has been relying more on debt financing to support its operations and growth initiatives. A high debt-to-capital ratio can indicate higher financial risk and potential constraints on the company's financial flexibility.

It would be essential for Applied Industrial Technologies to carefully manage its debt levels and monitor its capital structure to ensure a healthy balance between debt and equity. The company may need to focus on generating sufficient cash flows to cover its debt obligations and maintain investor confidence in its ability to manage debt effectively.