Kennametal Inc (KMT)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,039,270 | 1,002,590 | 1,026,790 | 1,024,710 | 1,004,810 |
| Total current liabilities | US$ in thousands | 422,329 | 415,961 | 433,975 | 485,649 | 437,394 |
| Current ratio | 2.46 | 2.41 | 2.37 | 2.11 | 2.30 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,039,270K ÷ $422,329K
= 2.46
The current ratio of Kennametal Inc. has demonstrated a generally stable to slightly improving trend over the observed period from June 30, 2021, to June 30, 2025. Specifically, the current ratio was 2.30 in 2021, indicating that the company's current assets were 2.3 times its current liabilities at that time. By June 30, 2022, there was a slight decrease to 2.11, suggesting a marginal weakening in short-term liquidity position. However, this decline was followed by a consistent increase in subsequent years, reflecting an improvement in the company's ability to meet its short-term obligations. The current ratio rose to 2.37 by June 30, 2023, and continued upward trajectory to reach 2.41 by June 30, 2024, and further to 2.46 in 2025. This upward trend indicates a strengthening liquidity position, with current assets increasingly surpassing current liabilities. Overall, Kennametal Inc.'s current ratio remains well above the generally accepted minimum of 1.0, suggesting adequate liquidity and financial stability in the short term, with a tendency towards improved liquidity over the period analyzed.