Kennametal Inc (KMT)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 140,540 | 127,971 | 106,021 | 85,586 | 154,047 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 422,329 | 415,961 | 433,975 | 485,649 | 437,394 |
| Cash ratio | 0.33 | 0.31 | 0.24 | 0.18 | 0.35 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($140,540K
+ $—K)
÷ $422,329K
= 0.33
The cash ratio of Kennametal Inc demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In 2021, the company's cash ratio stood at 0.35, indicating a moderate level of liquidity in terms of cash and cash equivalents relative to its current liabilities. This ratio declined significantly in 2022 to 0.18, suggesting a reduction in liquidity buffer or an increase in current liabilities relative to cash holdings.
By 2023, the cash ratio experienced a partial recovery to 0.24, indicating an improvement in liquidity position, though still below the 2021 level. The upward trend continued into 2024, with the ratio reaching 0.31, approaching the mid-2021 figure, reflecting a strengthening of liquid assets relative to current obligations. In 2025, the ratio further increased to 0.33, indicating a continued improvement in the company's liquidity stance.
Overall, the trajectory of Kennametal Inc’s cash ratio suggests a period of liquidity challenges in 2022 followed by a gradual and steady recovery in subsequent years. The observed pattern indicates that the company has been enhancing its cash reserves relative to current liabilities, which may support its ability to meet short-term obligations efficiently.