Applied Industrial Technologies (AIT)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,175,540 | 2,951,910 | 2,743,330 | 2,452,590 | 2,271,810 |
| Total stockholders’ equity | US$ in thousands | 1,844,520 | 1,688,780 | 1,458,440 | 1,149,360 | 932,546 |
| Financial leverage ratio | 1.72 | 1.75 | 1.88 | 2.13 | 2.44 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,175,540K ÷ $1,844,520K
= 1.72
The financial leverage ratio of Applied Industrial Technologies reflects a consistent downward trend over the period from June 30, 2021 to June 30, 2025. Specifically, the ratio decreased from 2.44 in 2021 to 1.72 in 2025. This indicates a gradual reduction in the company's reliance on debt relative to its equity. Such a decline suggests that the company has been progressively deleveraging its capital structure, potentially aiming to enhance financial stability and reduce financial risk. The steady decrease over the four-year span demonstrates a strategic shift toward lower leverage, which may impact the company's return on equity and risk profile, and could signal improved capacity to withstand financial downturns or a conservative approach toward debt management.