Kennametal Inc (KMT)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.66 | 6.85 | 7.96 | 7.21 | 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 | |
| DSO | days | 54.82 | 53.26 | 45.85 | 50.63 | 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 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.66
= 54.82
The analysis of Kennametal Inc.'s Days of Sales Outstanding (DSO) from September 30, 2020, through June 30, 2025, reveals a generally stable liquidity management trend with some fluctuations over the period.
Initially, the DSO increased from approximately 51.62 days as of September 30, 2020, to a peak of approximately 64.93 days on March 31, 2021. This rise indicates the company experienced a lengthening in the average collection period during this period, possibly reflecting more lenient credit terms, delays in collection, or changes in customer payment behaviors during that time.
Following the peak, there is a noticeable downward trend, with the DSO decreasing to around 50.48 days by December 31, 2021. This reduction suggests improved collection efficiency and tighter credit management. The DSO remained relatively stable through most of 2022, fluctuating slightly around the mid-50-day range, which indicates consistent receivables collection practices during this period.
In 2023, the DSO continued to hover around the low 50s, with minor increases and decreases, reaching 55.67 days on March 31, 2023, and returning to approximately 50.75 days by September 30, 2023. The DSO was then relatively steady through December 2023 and early 2024, with values around the mid-50-day range, before declining again to approximately 45.85 days on December 31, 2024.
The recent data from 2025 indicates a slight increase in the DSO, with values at approximately 53.26 days on March 31, 2025, and reaching 54.82 days by June 30, 2025, suggesting a modest elongation of the receivable collection cycle in that period.
Overall, Kennametal Inc. exhibits a history of manageable and relatively stable DSO levels, with periodic fluctuations reflecting shifts in collection efficiency, credit policies, or customer payment profiles. The company’s ability to maintain DSO generally within a range of approximately 45 to 65 days indicates a moderate balance between extending credit to customers and maintaining cash flow liquidity.