Kennametal Inc (KMT)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.76 | 6.76 | 6.81 | 6.08 | 7.92 | |
| DSO | days | 54.00 | 53.97 | 53.57 | 60.05 | 46.07 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.76
= 54.00
Based on the data provided, Kennametal Inc's Days Sales Outstanding (DSO) has shown some fluctuations over the past five years. In June 2020, the DSO was 46.07 days, indicating that on average, it took the company approximately 46 days to collect its accounts receivable.
Subsequently, the DSO increased to 60.05 days in June 2021, suggesting a lengthening of the collection period. However, in the following years, the DSO decreased slightly to 53.57 days in June 2022, 53.97 days in June 2023, and 54.00 days in June 2024.
Overall, the trend in DSO indicates that Kennametal Inc has shown some improvement in its accounts receivable collection efficiency in recent years. It is essential for the company to continue monitoring and managing its DSO to ensure timely collection of receivables, which can positively impact its cash flow and overall financial health.