Kennametal Inc (KMT)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,966,840 | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 |
| Total current assets | US$ in thousands | 1,039,270 | 1,002,590 | 1,026,790 | 1,024,710 | 1,004,810 |
| Total current liabilities | US$ in thousands | 422,329 | 415,961 | 433,975 | 485,649 | 437,394 |
| Working capital turnover | 3.19 | 3.49 | 3.51 | 3.73 | 3.25 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,966,840K ÷ ($1,039,270K – $422,329K)
= 3.19
The working capital turnover ratio for Kennametal Inc. displays a trend of incremental improvement followed by a gradual decline over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 3.25 in 2021 to a peak of 3.73 in 2022. This upward movement signifies that, during this interval, the company was utilizing its working capital more efficiently to generate sales.
Subsequently, the ratio experienced a slight decline in the following years, decreasing to 3.51 in 2023, then to 3.49 in 2024, and further down to 3.19 in 2025. These movements suggest a slight reduction in operational efficiency concerning working capital utilization.
Overall, the pattern indicates a period of improved efficiency in 2022, potentially driven by better inventory management, receivables collection, or payables management, followed by a stabilization phase and a modest decline in efficiency by the fiscal year ending June 30, 2025. This change could reflect shifts in operational practices, market conditions, or strategic focus, warranting further investigation into underlying operational factors.