Kennametal Inc (KMT)
Operating profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 170,223 | 192,417 | 218,140 | 102,168 | 22,252 |
| Revenue | US$ in thousands | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 | 1,885,300 |
| Operating profit margin | 8.32% | 9.26% | 10.84% | 5.55% | 1.18% |
June 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $170,223K ÷ $2,046,900K
= 8.32%
Kennametal Inc's operating profit margin has fluctuated over the past five years, ranging from 1.18% in 2020 to 10.84% in 2022. The downward trend in 2020 followed by an increase in subsequent years indicates some volatility in the company's operating profitability. While the operating profit margin decreased in 2021 compared to the prior year, it bounced back in 2022, reaching its highest level in the period under review. However, there was a decline in the operating profit margin in 2023 and 2024, suggesting potential challenges in controlling operating expenses or generating higher revenues in those years. Overall, a closer examination of the company's cost structure and revenue sources may be necessary to understand the factors driving the fluctuations in the operating profit margin.