Kennametal Inc (KMT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 127,971 | 92,119 | 90,735 | 95,098 | 106,021 | 93,474 | 76,784 | 64,568 | 85,586 | 99,982 | 101,799 | 107,316 | 154,047 | 114,307 | 103,188 | 98,290 | 606,684 | 85,230 | 105,210 | 113,522 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.31 | 0.22 | 0.22 | 0.23 | 0.24 | 0.19 | 0.16 | 0.13 | 0.18 | 0.22 | 0.25 | 0.28 | 0.35 | 0.27 | 0.26 | 0.24 | 0.68 | 0.22 | 0.26 | 0.27 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($127,971K
+ $—K)
÷ $415,961K
= 0.31
The cash ratio of Kennametal Inc has fluctuated over the past 20 quarters. The ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents alone.
The trend indicates variability in Kennametal Inc's liquidity position. The ratio ranged from a low of 0.13 to a high of 0.68, indicating significant fluctuations in the company's ability to cover its short-term obligations with cash holdings.
It is observed that the cash ratio was relatively low in the earlier quarters, with a notable increase in the ratio in the latter part of the period. This suggests an improvement in Kennametal Inc's liquidity position over time, with the company holding more cash relative to its short-term liabilities.
Overall, monitoring the cash ratio trend can provide insights into Kennametal Inc's liquidity management and financial health, highlighting the importance of maintaining an appropriate level of cash reserves to meet short-term obligations.