Kennametal Inc (KMT)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,002,590 | 1,026,790 | 1,024,710 | 1,004,810 | 1,440,810 |
| Total current liabilities | US$ in thousands | 415,961 | 433,975 | 485,649 | 437,394 | 898,080 |
| Current ratio | 2.41 | 2.37 | 2.11 | 2.30 | 1.60 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,002,590K ÷ $415,961K
= 2.41
Kennametal Inc's current ratio has shown a consistent upward trend over the past five years. The current ratio increased from 1.60 in 2020 to 2.41 in 2024, indicating an improvement in the company's short-term liquidity position. This suggests that Kennametal Inc has more than enough current assets to cover its short-term liabilities, providing a strong indication of financial stability and the ability to meet its short-term obligations. The company's current ratio peaked in 2024 at 2.41, reflecting the company's ability to efficiently manage its current assets and liabilities. Overall, the increasing trend in Kennametal Inc's current ratio over the five-year period indicates positive liquidity management and financial health.