Kennametal Inc (KMT)
Working capital turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,046,898 | 2,053,825 | 2,074,067 | 2,075,868 | 2,078,184 | 2,057,964 | 2,034,187 | 2,023,739 | 2,012,456 | 1,998,412 | 1,970,811 | 1,924,645 | 1,841,441 | 1,704,523 | 1,702,949 | 1,767,522 | 1,885,305 | 2,110,201 | 2,224,321 | 2,306,635 |
| Total current assets | US$ in thousands | 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 | 1,440,810 | 966,723 | 1,035,910 | 1,065,390 |
| Total current liabilities | US$ in thousands | 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 | 898,080 | 383,131 | 409,110 | 418,719 |
| Working capital turnover | 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 | 3.47 | 3.62 | 3.55 | 3.57 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,046,898K ÷ ($1,002,590K – $415,961K)
= 3.49
Kennametal Inc's working capital turnover has been relatively stable over the past few quarters, ranging between 3.12 and 3.94. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more revenue from its working capital, which is a positive sign of operational efficiency.
In this case, Kennametal Inc's working capital turnover has generally been in the range of 3.40 to 3.73, which suggests that the company is effectively utilizing its working capital to generate sales. The slight fluctuations in the ratio over the quarters are normal and may be influenced by various factors such as sales trends, inventory management, and accounts receivable collection.
Overall, a consistent working capital turnover ratio indicates that Kennametal Inc is efficiently managing its working capital to support its operations and generate revenue. It is essential for the company to continue monitoring and optimizing its working capital turnover to ensure sustainable operational performance and profitability.