Kennametal Inc (KMT)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 143,123 | 170,223 | 192,417 | 218,140 | 140,096 |
| Total assets | US$ in thousands | 2,545,410 | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 |
| Operating ROA | 5.62% | 6.80% | 7.55% | 8.48% | 5.26% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $143,123K ÷ $2,545,410K
= 5.62%
The operating return on assets (ROA) of Kennametal Inc. demonstrates a fluctuating trend over the period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the operating ROA stood at 5.26%, indicating a modest efficiency in generating operating income relative to the company's total assets. This metric improves significantly in the subsequent year, reaching 8.48% as of June 30, 2022, reflecting enhanced operational efficiency or profitability, potentially driven by improved sales performance, cost management, or favorable market conditions.
Following this peak, the operating ROA decreases slightly to 7.55% by June 30, 2023, suggesting some degree of operational or external challenges impacting the efficiency of asset utilization. The downward trend continues marginally to 6.80% as of June 30, 2024, indicating a further slight decline in operating performance or asset productivity.
By June 30, 2025, the operating ROA declines more notably to 5.62%, approaching levels similar to those observed in 2021, which may imply increased competitive pressures, cost challenges, or changes in operational strategy affecting overall asset efficiency. Overall, the trend reflects a cycle of improvement followed by a gradual decline in operating profitability relative to total assets, underscoring potential strategic or market-related shifts influencing Kennametal Inc.'s operational efficiency over this period.