Kennametal Inc (KMT)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 143,123 | 174,764 | 172,396 | 169,208 | 178,299 | 171,219 | 181,998 | 189,010 | 192,418 | 199,153 | 200,046 | 212,060 | 218,140 | 216,266 | 202,424 | 173,953 | 102,169 | 56,999 | 55,370 | -11,302 |
| Total assets | US$ in thousands | 2,545,410 | 2,490,500 | 2,435,800 | 2,521,930 | 2,503,760 | 2,518,640 | 2,544,350 | 2,512,760 | 2,547,230 | 2,603,580 | 2,578,600 | 2,516,210 | 2,573,520 | 2,659,510 | 2,610,870 | 2,607,570 | 2,665,760 | 2,614,980 | 2,614,830 | 2,559,000 |
| Operating ROA | 5.62% | 7.02% | 7.08% | 6.71% | 7.12% | 6.80% | 7.15% | 7.52% | 7.55% | 7.65% | 7.76% | 8.43% | 8.48% | 8.13% | 7.75% | 6.67% | 3.83% | 2.18% | 2.12% | -0.44% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $143,123K ÷ $2,545,410K
= 5.62%
The Operating Return on Assets (Operating ROA) for Kennametal Inc. has exhibited notable fluctuations over the analyzed period from September 2020 through June 2025. At the start of the period, in September 2020, the operating ROA was negative at -0.44%, indicating that the company was experiencing operating inefficiencies or facing challenges impacting profitability relative to its asset base during that quarter.
Subsequently, a significant recovery is observed, with the metric turning positive by December 2020 at 2.12%, and continuing its upward trajectory through the first half of 2021, reaching 8.13% by March 2022. This upward trend reflects improving operational efficiency and profitability, which appears to have been driven by increased operational leverage and perhaps successful cost management or revenue growth efforts, culminating in a peak of 8.48% in June 2022.
Following this peak, the Operating ROA experienced a slight decline but remained relatively stable, fluctuating between approximately 8.43% and 7.76% through the end of 2022. The data indicates a period of stabilization with minor variations, suggesting that the company maintained a relatively consistent level of operational efficiency during this interval.
In 2023, a gradual decline is evident, with the Operating ROA moving from 7.65% in March to around 7.12% by June, and further decreasing to approximately 7.08% by the end of the year. The trend persists into early 2024, with figures decreasing further to 6.80% in March 2024 before slight recovery to 7.12% in June 2024. The decline may reflect increased operating costs, market pressures, or a normalization from previous high performance levels.
By the second quarter of 2025, the Operating ROA fell to 5.62%, representing the lowest point within the observed period. This decline could signal emerging operational challenges,-margin pressures, or strategic shifts impacting asset utilization efficiency.
Overall, the Operating ROA trajectory indicates a company that recovered from negative returns in late 2020 to achieve robust operational profitability during 2021 and the first half of 2022, followed by a period of stabilization and a gradual decline commencing in 2023 through mid-2025. The trend reflects dynamic changes in operational efficiency, influenced by economic, industry-specific, or company-driven factors, which warrant consideration for future performance assessments.