Kennametal Inc (KMT)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,046,898 | 2,053,825 | 2,074,067 | 2,075,868 | 2,078,184 | 2,057,964 | 2,034,187 | 2,023,739 | 2,012,456 | 1,998,412 | 1,970,811 | 1,924,645 | 1,841,441 | 1,704,523 | 1,702,949 | 1,767,522 | 1,885,305 | 2,110,201 | 2,224,321 | 2,306,635 |
| Property, plant and equipment | US$ in thousands | 938,063 | 947,709 | 961,396 | 958,246 | 969,068 | 974,917 | 981,566 | 972,530 | 1,002,040 | 1,012,260 | 1,022,770 | 1,036,430 | 1,055,140 | 1,053,990 | 1,073,470 | 1,054,210 | 1,038,270 | 1,015,360 | 1,008,640 | 964,288 |
| Fixed asset turnover | 2.18 | 2.17 | 2.16 | 2.17 | 2.14 | 2.11 | 2.07 | 2.08 | 2.01 | 1.97 | 1.93 | 1.86 | 1.75 | 1.62 | 1.59 | 1.68 | 1.82 | 2.08 | 2.21 | 2.39 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,046,898K ÷ $938,063K
= 2.18
The fixed asset turnover ratio for Kennametal Inc has been fluctuating over the past two years, ranging from a low of 1.59 in March 2021 to a high of 2.21 in June 2020. The overall trend shows a gradual improvement in the ratio from late 2021 to mid-2024, indicating that the company is generating more revenue relative to its investment in fixed assets.
In the most recent period ending June 30, 2024, Kennametal Inc achieved a fixed asset turnover ratio of 2.18, which suggests that the company generated $2.18 in revenue for every dollar invested in fixed assets. This indicates an efficient utilization of fixed assets to generate sales.
The fluctuations in the fixed asset turnover ratio may be influenced by various factors such as changes in sales volume, asset utilization efficiency, or capital investment decisions. It is important for Kennametal Inc to monitor and analyze these fluctuations to ensure optimal utilization of fixed assets and continued improvement in operational efficiency.