Kennametal Inc (KMT)
Receivables 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 |
| Receivables | US$ in thousands | 302,810 | 307,313 | 295,346 | 302,945 | 237,983 |
| Receivables turnover | 6.76 | 6.76 | 6.81 | 6.08 | 7.92 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,046,900K ÷ $302,810K
= 6.76
The receivables turnover ratio for Kennametal Inc has been relatively consistent over the past five years, hovering around the range of 6 to 8 times. The ratio measures how efficiently the company is able to collect its accounts receivable during a specific period.
In 2020, the ratio was at its peak at 7.92 times, indicating that the company was collecting its receivables almost 8 times throughout the year. This suggests strong efficiency in collecting outstanding payments from customers.
In the following years, the ratio remained relatively stable, with a slight decrease to 6.08 times in 2021, a slight increase to 6.81 times in 2022, and then returning to 6.76 times in 2023 and 2024.
Overall, the consistency of the receivables turnover ratio indicates that Kennametal Inc has been successful in managing its accounts receivable efficiently, converting credit sales into cash effectively. This is a positive indicator of the company's financial health and its ability to maintain a steady cash flow.