Applied Industrial Technologies (AIT)

Financial leverage ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Total assets US$ in thousands 3,175,540 3,115,660 3,044,640 3,003,210 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
Total stockholders’ equity US$ in thousands 1,844,520 1,827,480 1,793,510 1,752,080 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
Financial leverage ratio 1.72 1.70 1.70 1.71 1.75 1.71 1.73 1.79 1.88 1.89 1.95 2.03 2.13 2.17 2.18 2.36 2.44 2.47 2.54 2.54

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,175,540K ÷ $1,844,520K
= 1.72

The financial leverage ratio for Applied Industrial Technologies demonstrates a clear trend of gradual decline over the analyzed period from September 30, 2020, through June 30, 2025. Initially, the ratio remained relatively stable at 2.54 at both September and December 2020, indicating that the company’s capital structure was characterized by a moderate level of leverage during this period.

Starting in March 2021, the ratio began a consistent downward trajectory, decreasing to 2.47, and continued declining through subsequent quarters, reaching approximately 1.70 by December 2024. This reduction signifies a progressive decrease in the company’s reliance on debt relative to equity, suggesting a shift towards a less leveraged capital structure. Notably, from September 2022 onward, the ratio consistently fell below 2.0, reflecting an increasing preference for equity financing or debt reduction.

Between June 2024 and June 2025, the ratio stabilized around 1.70 to 1.72, indicating a relatively steady leverage position during this period, with minor fluctuations. Overall, the downward trend in the financial leverage ratio implies that Applied Industrial Technologies has been reducing its financial leverage over time, which could be associated with improving financial stability, lower financial risk, or a strategic move to deleverage after periods of higher leverage earlier in the observed timeframe.

This pattern demonstrates prudent financial management, aligning with a potential goal to mitigate risk exposure while maintaining an appropriate capital structure for sustainable growth.