Kennametal Inc (KMT)
Gross profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 627,093 | 646,439 | 647,977 | 552,478 | 529,471 |
| Revenue | US$ in thousands | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 | 1,885,300 |
| Gross profit margin | 30.64% | 31.11% | 32.20% | 30.00% | 28.08% |
June 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $627,093K ÷ $2,046,900K
= 30.64%
The gross profit margin of Kennametal Inc has shown fluctuations over the past five years. In the most recent fiscal year ended on June 30, 2024, the gross profit margin decreased to 30.64% from 31.11% in the previous year. This decline indicates that the company's ability to generate profit from its core business operations slightly weakened. However, compared to the margin of 28.08% in June 2020, there has been an overall improvement in profitability over the five-year period.
It is essential to further analyze the factors contributing to this decline in the gross profit margin. Potential reasons could include changes in the cost of goods sold, pricing strategies, competitive pressures, or shifts in product mix. Monitoring and addressing these factors will be crucial for Kennametal Inc to maintain and enhance its profitability in the future.