Kennametal Inc (KMT)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 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 7.92 6.94 7.17 7.04
Payables turnover 7.41 7.38 7.40 7.23 7.04 7.19 6.76 6.68 5.99 6.80 7.16 7.43 7.26 7.46 9.08 9.35 8.24 8.90 8.84 7.79
Working capital turnover 3.49 3.50 3.48 3.51 3.51 3.49 3.67 3.94 3.73 3.43 3.44 3.33 3.25 3.15 3.12 3.40 3.47 3.62 3.55 3.57

Kennametal Inc's activity ratios provide key insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover: Kennametal's inventory turnover ratio has been relatively stable, ranging between 2.31 and 2.76 over the past few quarters. This suggests that the company is efficiently managing its inventory levels and converting them into sales. A higher ratio indicates better inventory management.

2. Receivables Turnover: The company's receivables turnover has fluctuated between 5.62 and 7.26 in the analyzed period. A higher turnover indicates that Kennametal is collecting its receivables more quickly, demonstrating effective credit management and potentially minimizing bad debts.

3. Payables Turnover: Kennametal's payables turnover has shown some variability, ranging between 5.99 and 9.35. A higher turnover ratio implies that the company is paying its suppliers more quickly, possibly taking advantage of discounts and maintaining strong supplier relationships.

4. Working Capital Turnover: The working capital turnover ratio reflects Kennametal's ability to generate sales from its working capital. The ratio has remained relatively stable, indicating consistent efficiency in generating revenue from its current assets. A higher ratio signifies better utilization of working capital.

Overall, Kennametal Inc's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and drive business growth. However, monitoring these ratios over time can help identify any potential areas for improvement in operational efficiency and cash flow management.

Average number of days

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
Days of inventory on hand (DOH) days 132.30 140.53 145.89 145.93 142.16 153.23 158.27 156.83 152.70 152.59 146.14 140.01 134.89 141.73 149.02 145.99 140.65 128.45 124.52 131.43
Days of sales outstanding (DSO) days 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 46.07 52.61 50.93 51.84
Number of days of payables days 49.24 49.47 49.33 50.50 51.84 50.77 54.01 54.61 60.96 53.67 50.96 49.10 50.31 48.96 40.21 39.05 44.32 41.03 41.27 46.87

The Days of Inventory on Hand (DOH) for Kennametal Inc have shown a fluctuating trend over the periods analyzed, ranging from 124.52 days to 158.27 days. This indicates that the company has taken anywhere from approximately 4 to 5.5 months to sell its inventory during these periods. A higher number of days of inventory on hand suggest slower inventory turnover and may tie up cash in unsold inventory.

The Days of Sales Outstanding (DSO) measure indicates the average number of days it takes for Kennametal Inc to collect payment after a sale is made. The DSO values have ranged from 46.07 days to 64.93 days, showing varying efficiency in collecting receivables over the periods analyzed. A lower DSO is indicative of faster collections and better cash flow management.

The Number of Days of Payables metric reflects how quickly the company pays its suppliers. Kennametal Inc's payment periods have ranged from 39.05 days to 60.96 days over the periods analyzed. A longer payment period may suggest better cash flow management as the company holds onto cash longer before paying its bills.

Overall, analyzing these activity ratios together can provide insights into Kennametal Inc's management of inventory, receivables, and payables, highlighting the efficiencies and potential liquidity challenges faced by the company.

Long-term

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
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
Total asset turnover 0.82 0.82 0.82 0.83 0.82 0.79 0.79 0.80 0.78 0.75 0.75 0.74 0.69 0.65 0.65 0.69 0.62 0.83 0.85 0.89

Kennametal Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in utilizing its assets to generate sales.

The fixed asset turnover ratio has been relatively stable over the periods, ranging between 1.75 and 2.18. This indicates that Kennametal efficiently generates sales relative to its investment in fixed assets such as machinery and equipment. The gradual increase in the fixed asset turnover ratio over the periods suggests improving efficiency in utilizing these assets to generate revenue.

On the other hand, the total asset turnover ratio fluctuates between 0.62 and 0.85, indicating that Kennametal's overall assets are generating varying levels of sales. The ratio has shown some volatility, possibly due to changes in the company's asset base or sales volume. However, the ratio has generally trended upwards, suggesting that Kennametal is becoming more efficient in using its total assets to generate revenue.

Overall, the analysis of Kennametal Inc's long-term activity ratios indicates that the company has been improving its asset utilization efficiency over the periods considered, which could potentially lead to enhanced profitability and financial performance in the future.