Kennametal Inc (KMT)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,966,846 | 1,993,706 | 2,023,101 | 2,036,370 | 2,046,898 | 2,053,824 | 2,074,066 | 2,075,867 | 2,078,183 | 2,057,965 | 2,034,188 | 2,023,740 | 2,012,457 | 1,998,412 | 1,970,811 | 1,924,645 | 1,841,441 | 1,704,523 | 1,702,949 | 1,767,522 |
| Total current assets | US$ in thousands | 1,039,270 | 1,013,360 | 968,774 | 1,003,870 | 1,002,590 | 999,937 | 1,009,820 | 1,010,560 | 1,026,790 | 1,079,040 | 1,048,300 | 1,011,490 | 1,024,710 | 1,043,240 | 984,201 | 966,948 | 1,004,810 | 966,916 | 948,686 | 935,721 |
| Total current liabilities | US$ in thousands | 422,329 | 415,626 | 382,228 | 398,386 | 415,961 | 413,245 | 414,108 | 419,846 | 433,975 | 488,729 | 494,334 | 497,488 | 485,649 | 460,365 | 410,983 | 389,223 | 437,394 | 425,553 | 402,641 | 415,573 |
| Working capital turnover | 3.19 | 3.34 | 3.45 | 3.36 | 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 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,966,846K ÷ ($1,039,270K – $422,329K)
= 3.19
The analysis of Kennametal Inc.'s working capital turnover ratio over the specified period indicates a generally stable but subtly fluctuating trend. At the start of the period, on September 30, 2020, the ratio was 3.40, suggesting that the company efficiently utilized its working capital to generate sales. During 2021, the ratio experienced slight increases, reaching 3.44 by December 31, 2021, which points toward marginal improvements in working capital efficiency.
In 2022, the ratio demonstrated a gradual upward movement, culminating at 3.94 by September 30, 2022. This increase signifies a better utilization of working capital relative to sales, potentially attributable to operational efficiencies or increased sales activity relative to working capital levels. However, from the latter part of 2022 into 2023, the ratio declined slightly to 3.49 by March 31, 2023, and remained relatively stable around 3.51 through June and September 2023.
The data from late 2023 and into mid-2025 shows minor fluctuations around the 3.34 to 3.49 range, with a slight dip to 3.19 on June 30, 2025, signaling a modest decline in working capital efficiency. Notably, the ratio's consistency in the 3.3 to 3.5 range for much of this period indicates that Kennametal Inc. has maintained a relatively steady level of working capital utilization in proportion to its sales activities.
Overall, the trend reflects a stable operational environment with periodic slight improvements and declines in working capital turnover, suggesting management’s efforts to align working capital management with sales growth and operational needs over the analyzed period. The ratios imply that the company has been effective in maintaining a consistent balance between its working capital and sales, with some periods of increased efficiency, notably around late 2021 and 2022.