Kennametal Inc (KMT)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 1,368,777 1,372,806 1,408,190 1,426,892 1,425,531 1,425,287 1,427,991 1,426,499 1,431,745 1,417,541 1,397,058 1,376,545 1,364,480 1,344,386 1,331,230 1,316,490 1,288,963 1,226,292 1,217,875 1,271,959
Inventory US$ in thousands 538,237 555,989 536,634 543,427 514,632 547,654 570,785 570,345 557,630 595,088 605,780 591,470 570,836 562,042 533,016 505,000 476,345 476,164 497,224 508,739
Inventory turnover 2.54 2.47 2.62 2.63 2.77 2.60 2.50 2.50 2.57 2.38 2.31 2.33 2.39 2.39 2.50 2.61 2.71 2.58 2.45 2.50

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,368,777K ÷ $538,237K
= 2.54

The inventory turnover ratio of Kennametal Inc. demonstrates a relatively stable pattern over the analyzed period, with values fluctuating within a narrow range. At the beginning of the period, as of September 30, 2020, the ratio was 2.50, indicating that the company's inventory was sold and replaced approximately 2.5 times during that fiscal quarter.

Throughout 2020 and early 2021, the ratio experienced minor variations, reaching a high of 2.71 in June 2021, which suggests a slight increase in inventory efficiency during that period. Conversely, from late 2021 to early 2023, the ratio generally declined, with values dipping to around 2.31 by December 2022, indicating a gradual slowdown in inventory turnover and potentially higher levels of unsold inventory.

Beginning in mid-2023, the ratio exhibited an upward trend, reaching a peak of approximately 2.77 in June 2024. This increase points to an improvement in inventory management, implying the company was able to sell and replenish its inventory more frequently during this period. However, the ratio slightly declined again to approximately 2.63 by September 2024, before stabilizing around 2.62 in December 2024.

Toward the latter part of the observed period, the ratio remained relatively steady, with values around 2.47 to 2.55 in 2025, suggesting a consistent level of inventory turnover close to historical norms.

Overall, the inventory turnover ratio for Kennametal Inc. indicates moderate inventory management efficiency with periods of improvement and slowdown. The ratios suggest the company's capacity to maintain effective inventory control, although slight fluctuations mark typical seasonal or operational variations rather than drastic changes in inventory strategy.