Kennametal Inc (KMT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 3,037,590 | 2,538,100 | 2,623,030 | 2,599,400 |
| Operating ROA | 6.80% | 6.54% | 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% | 0.73% | 3.61% | 5.17% | 10.08% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $170,223K ÷ $2,503,760K
= 6.80%
Kennametal Inc's operating return on assets (operating ROA) has fluctuated over the past few quarters. The trend shows that the company's operating ROA has generally been positive, ranging from a low of -0.44% in December 2020 to a high of 8.48% in June 2022.
From December 2020 to June 2022, there was a significant improvement in operating ROA, peaking at 8.48%. This indicates that the company was able to generate higher operating income relative to its assets during this period. However, there was a slight decline in operating ROA in the subsequent quarters, with the metric ranging between 6.54% and 8.13%.
It is essential to note that while the operating ROA has generally been positive, there have been instances of lower values in the earlier quarters, such as in 2019 and 2020. This suggests that Kennametal Inc may have faced challenges in generating operating income relative to its assets during those periods.
Overall, the trend in Kennametal Inc's operating ROA indicates that the company has been able to effectively utilize its assets to generate operating income, with some fluctuations in performance over the quarters. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the company's operational efficiency and profitability.