The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Kennametal India's current ratio for the quarter that ended in Mar. 2025 was 0.00.
Kennametal India has a current ratio of 0.00. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Kennametal India has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Kennametal India's Current Ratio or its related term are showing as below:
BOM:505890'
s Current Ratio Range Over the Past 10 Years
Min: 1.93 Med: 2.73 Max: 3.56
Current: 3.42
During the past 13 years, Kennametal India's highest Current Ratio was 3.56. The lowest was 1.93. And the median was 2.73.
BOM:505890's Current Ratio is ranked better than 78.42% of 3022
companies
in the Industrial Products industry
Industry Median: 1.995
vs BOM:505890: 3.42
Kennametal India Current Ratio Historical Data
The historical data trend for Kennametal India's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Kennametal India's Current Ratio
For the Tools & Accessories subindustry, Kennametal India's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kennametal India's Current Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kennametal India's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kennametal India (BOM:505890) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Kennametal India Current Ratio Related Terms
Thank you for viewing the detailed overview of Kennametal India's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kennametal India Ltd is an Indian company engaged in the business of manufacturing and trading of hard metal products and machine tools, which are sold in domestic and export markets. It has two reportable segments. Machining solutions segment designs manufacture and sells customized capital intensive machines. Its sales comprise of machines, fixtures, sale of spares, and after-sales service. The hard metal products segment, which is the key revenue driver, deals in metal and metal cutting tools. Its products portfolio includes metalworking tools, mining, construction, engineered components, powdered materials and equipment, wear components, and ceramics. Geographically, it generates the majority of the revenue from India and also exports to Germany, China, the United States and others.
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