Kennametal Inc (KMT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 140,540 | 97,467 | 121,151 | 119,588 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.33 | 0.23 | 0.32 | 0.30 | 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 |
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. exhibits notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, at the end of September 2020, the ratio stood at 0.24, indicating that the company's cash and cash equivalents covered approximately 24% of its current liabilities. By December 31, 2020, this figure increased slightly to 0.26, maintaining a conservative liquidity position. The ratio continued to improve through March 31, 2021, reaching 0.27, and then experienced a significant increase to 0.35 by June 30, 2021, which suggests an enhancement in liquidity or a reduction in current liabilities relative to cash.
From September 2021 to December 2022, the ratio declined gradually, registering at 0.28 in September 2021, then decreasing to 0.25 in December 2021, and further diminishing to 0.22 by March 2022. The downward trend persisted into mid-2022, with the ratio falling to a low of 0.13 in September 2022 and slightly recovering to 0.16 by the end of 2022. This decline indicates a reduction in cash holdings relative to current liabilities, potentially reflecting increased working capital investments or cash uses for operational or strategic purposes.
Throughout 2023, the cash ratio showed some stabilization, oscillating between 0.19 and 0.24, with a notable increase to 0.31 by June 2024. The ratio then remained relatively steady, around 0.23 to 0.32, through the subsequent periods. The rise to 0.33 in June 2025 signifies an improved liquidity position, indicating a higher proportion of cash relative to current liabilities compared to previous years.
Overall, the cash ratio demonstrates initial strength and improvement during 2020 and mid-2021, followed by a period of decline and stabilization through 2022 and 2023, and then an upward trend toward mid-2025. This pattern reflects management's fluctuating emphasis on cash holdings and liquidity management strategies over the period, with recent increases potentially indicating a focus on strengthening liquidity buffers.