Kennametal Inc (KMT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 | 3,037,590 |
| Operating ROA | 6.80% | 7.55% | 8.48% | 3.83% | 0.73% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $170,223K ÷ $2,503,760K
= 6.80%
The operating return on assets (operating ROA) for Kennametal Inc has shown a fluctuating trend over the past five years. In June 2024, the operating ROA stood at 6.80%, representing a decrease from the previous year's 7.55%. Despite this decline, the company's operating ROA remains at a moderate level.
Comparing the current operating ROA to the figures from the previous years reveals a mixed performance. In June 2023 and 2022, Kennametal Inc experienced higher operating ROA values of 7.55% and 8.48% respectively, indicating stronger operational efficiency and profitability during those periods.
However, in June 2021, the operating ROA dropped to 3.83%, signaling a notable decline in performance. This decrease could be a cause for concern as it suggests a dip in the company's operational effectiveness.
Furthermore, the operating ROA of 0.73% in June 2020 was the lowest among the reported years, indicating a period of relatively poor operational performance for Kennametal Inc.
Overall, fluctuations in Kennametal Inc's operating ROA over the past five years demonstrate varying levels of operational efficiency and profitability. It is essential for the company to monitor and improve its operating ROA to ensure sustainable financial performance in the future.