Kennametal Inc (KMT)

Days of inventory on hand (DOH)

		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
Inventory turnover		2.76	2.60	2.50	2.50	2.57	2.38	2.31	2.33	2.39	2.39	2.50	2.61	2.71	2.58	2.45	2.50	2.60	2.84	2.93	2.78
DOH	days	132.30	140.53	145.89	145.93	142.16	153.23	158.27	156.83	152.70	152.59	146.14	140.01	134.89	141.73	149.02	145.99	140.65	128.45	124.52	131.43

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.76
= 132.30

The days of inventory on hand (DOH) for Kennametal Inc have shown some fluctuations over the past several quarters. In the most recent quarter ending June 30, 2024, the DOH was 132.30 days, a decrease from the previous quarter. This suggests that the company was able to manage its inventory more efficiently during this period.

Looking further back, the trend in DOH has generally been on the higher side, indicating that Kennametal Inc may have been carrying excess inventory relative to its sales levels. This can tie up capital and lead to higher holding costs.

It is worth noting that there were some improvements in managing inventory during certain quarters, such as in March 2020 and September 2019 where the DOH was relatively lower. This could indicate successful inventory management initiatives during those periods.

Overall, Kennametal Inc may benefit from more effective inventory management practices to reduce the number of days inventory is held on hand and optimize its working capital efficiency.