Applied Industrial Technologies (AIT)

Solvency ratios

	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
Debt-to-assets ratio	0.19	0.20	0.21	0.22	0.22	0.23	0.25	0.26	0.26	0.29	0.31	0.32	0.35	0.34	0.35	0.35	0.37	0.38	0.36	0.35
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
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
Financial leverage ratio	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	2.71	2.76	2.51	2.62

Applied Industrial Technologies' solvency ratios have shown a fluctuating trend over the past several quarters. The debt-to-assets ratio has ranged from 0.19 to 0.38, indicating that the company's level of debt relative to its total assets has varied but generally remained low. The debt-to-capital ratio and debt-to-equity ratio have demonstrated a similar pattern, fluctuating between 0.25 and 0.51 and 0.34 and 1.04, respectively. These ratios suggest that the company has maintained a moderate level of debt in relation to its capital and equity.

The financial leverage ratio has ranged from 1.71 to 2.76, reflecting changes in the company's financial structure and risk. This ratio indicates how much of the company's assets are financed by debt versus equity. The upward trend in the financial leverage ratio over the quarters may imply an increase in financial risk as the company relies more on debt to finance its operations.

Overall, while Applied Industrial Technologies has maintained relatively conservative levels of debt compared to its assets, capital, and equity, the increasing financial leverage ratio indicates a growing reliance on debt financing, which may warrant close monitoring to ensure sustained solvency and financial stability in the long term.

Coverage ratios

	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
Interest coverage	24.13	44.53	31.83	24.82	19.09	19.00	16.94	15.06	13.36	11.81	10.39	7.51	6.72	5.53	0.59	2.35	2.44	2.90	5.61	5.66

The interest coverage ratio for Applied Industrial Technologies has fluctuated over the past few quarters. From December 2021 to March 2023, the ratio showed a gradual increase, indicating the company's ability to comfortably cover its interest expenses with its earnings. However, the ratio dipped in June 2023 but rebounded in September 2023.

The interest coverage ratio significantly improved in the first half of 2024, reaching its highest levels in recent periods. This suggests that Applied Industrial Technologies has a strong ability to service its interest obligations from its operating profits. The company's interest coverage ratio remains well above 1, indicating a healthy financial position regarding its ability to meet interest payments. Overall, the trend in interest coverage for Applied Industrial Technologies is positive and suggests a solid financial position.