Applied Industrial Technologies (AIT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,688,780 | 1,458,440 | 1,149,360 | 932,546 | 843,542 |
| Debt-to-equity ratio | 0.34 | 0.41 | 0.56 | 0.84 | 1.01 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $572,279K ÷ $1,688,780K
= 0.34
The debt-to-equity ratio of Applied Industrial Technologies has shown a declining trend from 1.01 in June 2020 to 0.34 in June 2024. This indicates that the company has been progressively reducing its reliance on debt financing in relation to equity over the years. A lower debt-to-equity ratio typically suggests a lower financial risk and a stronger financial position, as it signifies that the company has a healthier balance between debt and equity in its capital structure. The decreasing trend in the ratio reflects a positive shift towards a more balanced and sustainable financing mix for Applied Industrial Technologies, which may enhance its financial stability and flexibility in the long term.