Kennametal Inc (KMT)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 170,223 | 164,754 | 181,998 | 189,010 | 192,418 | 199,153 | 200,046 | 212,060 | 218,140 | 216,265 | 202,423 | 173,952 | 102,168 | 56,999 | 55,370 | -11,302 | 22,252 | 91,600 | 135,578 | 262,074 |
| Revenue (ttm) | US$ in thousands | 2,046,898 | 2,053,825 | 2,074,067 | 2,075,868 | 2,078,184 | 2,057,964 | 2,034,187 | 2,023,739 | 2,012,456 | 1,998,412 | 1,970,811 | 1,924,645 | 1,841,441 | 1,704,523 | 1,702,949 | 1,767,522 | 1,885,305 | 2,110,201 | 2,224,321 | 2,306,635 |
| Operating profit margin | 8.32% | 8.02% | 8.77% | 9.11% | 9.26% | 9.68% | 9.83% | 10.48% | 10.84% | 10.82% | 10.27% | 9.04% | 5.55% | 3.34% | 3.25% | -0.64% | 1.18% | 4.34% | 6.10% | 11.36% |
June 30, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $170,223K ÷ $2,046,898K
= 8.32%
Kennametal Inc's operating profit margin has shown fluctuation over the past several quarters. The trend indicates that the company's ability to generate profits from its core business operations has varied. The company's operating profit margin was highest at 10.84% in Sep 30, 2022, and lowest at -0.64% in Mar 31, 2020.
In recent quarters, the operating profit margin has been on a declining trend, with values ranging from 8.02% to 8.77%. This could indicate potential challenges in managing operating expenses or pricing pressures impacting profitability. However, the operating profit margin has generally stayed above 5%, which suggests a reasonable level of operational efficiency.
It would be important for Kennametal Inc to closely monitor and address the factors influencing its operating profit margin to ensure sustainable profitability in the long term. This could include strategies to enhance revenue growth, optimize operating expenses, and improve overall efficiency in the business operations.