Kennametal Inc (KMT)

The analysis of Kennametal Inc.'s days of sales outstanding (DSO) over the period from June 30, 2021, to June 30, 2025, reveals a relatively stable receivables collection period with slight fluctuations.

As of June 30, 2021, the DSO was approximately 60.05 days, indicating that, on average, it took the company just over two months to collect payments from its customers. By June 30, 2022, the DSO decreased to approximately 53.57 days, signifying an improvement in receivables collection efficiency of about 6.48 days or roughly 10.8%. This reduction suggests that the company's credit and collections processes became more effective during this period, leading to faster cash conversion from sales.

In the subsequent year, as of June 30, 2023, the DSO marginally increased to approximately 53.97 days, a minimal rise of 0.40 days from the previous year, maintaining a similar efficiency level. This slight uptick could indicate a temporary elongation in the collection cycle or minor changes in credit policies, customer payment behaviors, or industry conditions.

By June 30, 2024, the DSO remained essentially unchanged at 54.00 days, reinforcing the stability in receivables management. The DSO then showed a modest increase to approximately 54.82 days as of June 30, 2025. This incremental rise of about 0.82 days, representing approximately 1.5%, suggests a slight elongation in the receivables collection period, which may be attributable to factors such as altered credit terms, customer payment delays, or macroeconomic influences.

Overall, Kennametal Inc.'s DSO trend from 2021 through 2025 demonstrates a period of initial improvement followed by stabilization, with only minor increases in the later years. The consistent DSO within the range of approximately 54 to 55 days indicates steady receivables collection efficiency but also reflects an ongoing need for mindful credit management to sustain or improve cash flow dynamics.