Kennametal Inc (KMT)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.76 | 6.77 | 7.14 | 7.19 | 6.76 | 6.56 | 6.99 | 7.26 | 6.81 | 6.41 | 7.23 | 6.88 | 6.08 | 5.62 | 6.19 | 7.07 | 7.92 | 6.94 | 7.17 | 7.04 | |
| DSO | days | 54.00 | 53.93 | 51.13 | 50.75 | 53.97 | 55.67 | 52.22 | 50.27 | 53.57 | 56.92 | 50.48 | 53.05 | 60.05 | 64.93 | 58.97 | 51.62 | 46.07 | 52.61 | 50.93 | 51.84 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.76
= 54.00
To analyze Kennametal Inc's Days of Sales Outstanding (DSO) over the given periods, we observe fluctuations in the metric. DSO indicates the average number of days it takes for a company to collect payment after a sale is made. A lower DSO generally signifies that the company is collecting payments more quickly, which is favorable.
Looking at the data, we can see that DSO has varied over the periods, ranging from a low of 46.07 days to a high of 64.93 days. In the most recent period, DSO was at 54.00 days, reflecting the time it takes for Kennametal Inc to collect payments for sales made.
The trend in DSO shows some volatility, with occasional spikes followed by decreases. For instance, there was a notable increase in DSO in the first quarter of 2023 to 64.93 days, followed by a significant improvement to 51.13 days in the fourth quarter of 2023. This fluctuation indicates changes in the company's efficiency in collecting receivables.
It is essential for Kennametal Inc to monitor and manage its DSO effectively to ensure a healthy cash flow and efficient working capital management. By striving to lower DSO over time, the company can enhance liquidity and operational performance.
Overall, while the DSO metric for Kennametal Inc has shown fluctuations, it is crucial for the company to focus on optimizing its collection processes to maintain a healthy financial position and support sustainable growth.