Kennametal Inc (KMT)
Working capital 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 current assets | US$ in thousands | 1,002,590 | 1,026,790 | 1,024,710 | 1,004,810 | 1,440,810 |
| Total current liabilities | US$ in thousands | 415,961 | 433,975 | 485,649 | 437,394 | 898,080 |
| Working capital turnover | 3.49 | 3.51 | 3.73 | 3.25 | 3.47 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,046,900K ÷ ($1,002,590K – $415,961K)
= 3.49
Kennametal Inc's working capital turnover has exhibited variability over the past five years. The ratio has ranged from 3.25 to 3.73 during this period, with the highest value recorded in June 2022. This indicates that, on average, Kennametal Inc generates sales revenue approximately 3.49 times per year for every dollar of working capital invested. The slight fluctuations in the ratio suggest that the company has been managing its working capital efficiently to support its operations and sales growth. Overall, the working capital turnover ratio for Kennametal Inc appears stable and reflective of a sound operational performance.