Kennametal Inc (KMT)
Total asset 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 |
| Total assets | US$ in thousands | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 | 3,037,590 |
| Total asset turnover | 0.82 | 0.82 | 0.78 | 0.69 | 0.62 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,046,900K ÷ $2,503,760K
= 0.82
Kennametal Inc's total asset turnover has been relatively stable over the past five years, ranging from 0.62 in 2020 to 0.82 in 2024 and 2023. The total asset turnover ratio indicates how efficiently the company is using its assets to generate revenue. A higher ratio signifies that the company is generating more revenue per dollar of assets, reflecting efficiency in asset utilization.
In Kennametal's case, the consistent total asset turnover ratio above 0.75 over the past few years indicates that the company is able to effectively generate sales revenue with its existing asset base. This stability suggests that Kennametal has been maintaining a relatively consistent level of asset efficiency in recent years. However, it would be beneficial for the company to continue monitoring and potentially improving this ratio to ensure ongoing efficiency in asset utilization.