Kennametal Inc (KMT)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,419,805	1,422,401	1,427,991	1,426,499	1,431,745	1,417,540	1,397,057	1,376,544	1,364,479	1,344,386	1,331,230	1,316,490	1,288,963	1,226,292	1,217,875	1,271,959	1,355,835	1,468,466	1,531,518	1,547,252
Inventory	US$ in thousands	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	522,447	516,781	522,499	557,133
Inventory turnover		2.76	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	2.60	2.84	2.93	2.78

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,419,805K ÷ $514,632K
= 2.76

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by indicating how many times a company's inventory is sold and replaced over a period. For Kennametal Inc, the inventory turnover ratio has fluctuated over the past few quarters but generally remained between 2.31 to 2.93.

The trend indicates that on average, Kennametal Inc is able to turn over its inventory approximately 2.5 to 2.6 times a year. A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory levels, while a lower ratio may suggest excess inventory or slow-moving products.

Analyzing the inventory turnover over multiple quarters can provide insights into the company's inventory management practices and the demand for its products. In the case of Kennametal Inc, the fluctuations in the ratio may be influenced by seasonality, changes in demand, or inventory management strategies.

Overall, monitoring the inventory turnover ratio over time can help assess the efficiency of inventory management and supply chain operations within Kennametal Inc.