Kennametal Inc (KMT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 | 1,885,300 |
| Property, plant and equipment | US$ in thousands | 938,063 | 969,068 | 1,002,040 | 1,055,140 | 1,038,270 |
| Fixed asset turnover | 2.18 | 2.14 | 2.01 | 1.75 | 1.82 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,046,900K ÷ $938,063K
= 2.18
The fixed asset turnover ratio of Kennametal Inc has generally improved over the past five years, indicating the company's ability to generate revenues relative to the investment in fixed assets. The ratio increased from 1.82 in 2020 to 2.18 in 2024, reflecting a positive trend in the efficient utilization of fixed assets to generate sales.
Kennametal's fixed asset turnover ratio has been consistently above 1.0 in the past five years, suggesting that the company is effectively using its fixed assets to drive revenue generation. The ratios for 2023 and 2024 are notably higher than those in the earlier years, indicating an improvement in asset utilization efficiency.
Overall, the increasing trend in the fixed asset turnover ratio signifies that Kennametal is becoming more efficient in generating sales per dollar of investment in fixed assets, which is a positive indicator of the company's operational performance and asset management effectiveness.