Kennametal Inc (KMT)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.76 | 2.57 | 2.39 | 2.71 | 2.60 | |
| DOH | days | 132.30 | 142.16 | 152.70 | 134.89 | 140.65 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.76
= 132.30
Over the past five years, Kennametal Inc's days of inventory on hand (DOH) have displayed fluctuating trends. The DOH ratio measures how long the company takes to sell its inventory, with lower values indicating more efficient inventory management.
Kennametal's DOH was at its lowest in 2021 at 134.89 days but increased to 152.70 days in 2022, indicating a decline in inventory turnover efficiency. However, in 2023 and 2024, the DOH decreased to 142.16 days and 132.30 days, respectively, reflecting improvements in inventory management efficiency.
Overall, a decreasing trend in the DOH ratio from 2022 to 2024 suggests that Kennametal has been more effective in managing its inventory levels and selling its products more efficiently. This could potentially lead to lower holding costs, reduced risk of inventory obsolescence, and better cash flow management for the company.