Kennametal Inc (KMT)

Liquidity ratios

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
Current ratio 2.41 2.42 2.44 2.41 2.37 2.21 2.12 2.03 2.11 2.27 2.39 2.48 2.30 2.27 2.36 2.25 1.60 2.52 2.53 2.54
Quick ratio 1.04 0.96 0.92 0.91 0.95 0.83 0.74 0.69 0.78 0.89 0.91 0.99 1.04 0.98 0.94 0.84 0.94 1.02 1.02 1.05
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

Kennametal Inc's liquidity ratios show that the company has maintained a relatively strong liquidity position over the periods analyzed. The current ratio has consistently been above 2, indicating that the company has more than enough current assets to cover its current liabilities. This suggests a healthy short-term financial position, with a trend of stability or slight improvement.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has shown some variability but generally remains above 0.8. While there have been fluctuations, indicating some changes in the company's ability to quickly cover its short-term obligations without relying on inventory, the overall trend is relatively stable.

The cash ratio, which measures the extent to which current liabilities can be covered by cash and cash equivalents, has shown some variability but generally remains above 0.2. This indicates that the company has a sufficient level of cash to cover a significant portion of its current liabilities, providing a buffer for potential unforeseen expenses.

Overall, based on the liquidity ratios, Kennametal Inc appears to have a healthy liquidity position, with a strong ability to meet its short-term obligations. However, management should continue to monitor these ratios closely to ensure ongoing financial stability and adapt to any changes in the business environment.

Additional liquidity measure

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 conversion cycle days 137.06 145.00 147.69 146.19 144.29 158.13 156.48 152.49 145.31 155.84 145.67 143.97 144.63 157.70 167.79 158.56 142.40 140.03 134.19 136.40

The cash conversion cycle for Kennametal Inc has shown some fluctuations over the past few quarters. It indicates the average number of days it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

From December 2019 to September 2020, Kennametal's cash conversion cycle decreased steadily from 167.79 days to 140.03 days, implying an improvement in efficiency in managing its working capital. However, from September 2020 to June 2021, there was a slight increase in the cash conversion cycle, followed by a spike to 157.70 days in December 2021.

Throughout 2022, the cash conversion cycle remained above 145 days on average, indicating some challenges in efficiently managing the company's cash flows and working capital. The cycle improved slightly by the end of the year, with a decrease to 145.67 days in March 2022.

From March 2022 to June 2023, the cycle increased significantly, peaking at 158.13 days in March 2023, suggesting potential issues with liquidity and operational efficiency during that period. The cycle improved in the subsequent quarters of 2023, with a gradual decrease observed up to September 2023.

The latest data shows a cash conversion cycle of 137.06 days as of June 30, 2024, signaling a positive trend towards more efficient working capital management. Overall, Kennametal Inc has experienced fluctuations in its cash conversion cycle, reflecting the company's effectiveness in managing its cash flows, inventory, and accounts receivable.