Applied Industrial Technologies (AIT)

Debt-to-equity 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-equity ratio		0.34	0.34	0.36	0.39	0.41	0.43	0.48	0.53	0.56	0.62	0.67	0.75	0.84	0.83	0.89	0.90	1.01	1.04	0.91	0.93

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 been relatively stable over the past few years, fluctuating within a range of 0.34 to 1.04.

From December 2019 to June 2021, there was a gradual increase in the debt-to-equity ratio, peaking at 0.84 in June 2021. This upward trend suggests that the company's level of debt was increasing in relation to its equity during this period.

However, from September 2021 to June 2024, the debt-to-equity ratio has gradually decreased, indicating a decrease in the company's reliance on debt financing compared to equity. The ratio ranged from 0.34 to 0.62 during this period.

Overall, a lower debt-to-equity ratio indicates a lower financial risk for the company, as it suggests that the company has a stronger equity base relative to its debt. It is important to note that a debt-to-equity ratio of 1 or higher means that the company has more debt than equity, which could potentially be a cause for concern for investors and creditors. Applied Industrial Technologies seems to have managed its debt levels reasonably well over these periods.