Kennametal Inc (KMT)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 295,401 | 290,944 | 254,141 | 282,464 | 302,810 | 303,456 | 290,547 | 288,655 | 307,313 | 313,866 | 291,016 | 278,716 | 295,346 | 311,635 | 272,592 | 279,726 | 302,945 | 303,210 | 275,151 | 249,992 |
| 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 |
| Quick ratio | 1.03 | 0.93 | 0.98 | 1.01 | 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 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($140,540K
+ $—K
+ $295,401K)
÷ $422,329K
= 1.03
The quick ratio of Kennametal Inc. demonstrates a generally improving liquidity profile over the analyzed period from September 30, 2020, to June 30, 2025. Starting at 0.84 in September 2020, the ratio exhibited an upward trend, reaching a peak of approximately 1.04 during June 2024. This indicates an increasing capacity to meet short-term liabilities with highly liquid assets, primarily excluding inventories.
Throughout this period, the quick ratio experienced some fluctuations but maintained a level close to or above 0.9 from December 2020 onward. Notably, it remained below 1.0 during much of 2020 and early 2021, suggesting that short-term liquid assets were often insufficient to cover current liabilities fully. However, from March 2021 onwards, the ratio crossed the 1.0 threshold, indicating a more robust liquidity position.
Post-June 2021, the ratio displayed some variability, decreasing to a low of 0.69 in September 2022, which implied a temporary weakening in liquidity relative to liabilities. Nonetheless, the ratio recovered thereafter, approaching and surpassing 0.9 again by the end of 2023 and maintaining near or above this level into mid-2025.
This trend suggests an overall enhancement in Kennametal's short-term liquidity management, with periodic fluctuations possibly reflecting operational or strategic adjustments. The upward trajectory in recent periods points toward a healthier liquidity cushion, potentially enhancing the company's ability to meet immediate obligations without reliance on inventory sales or borrowing.