Kennametal Inc (KMT)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 140,132 | 154,714 | 201,155 | 60,677 | 1,346 |
| Revenue | US$ in thousands | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 | 1,885,300 |
| Pretax margin | 6.85% | 7.44% | 10.00% | 3.30% | 0.07% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $140,132K ÷ $2,046,900K
= 6.85%
Kennametal Inc's pretax margin has exhibited fluctuations over the past five years, varying from as low as 0.07% in 2020 to as high as 10% in 2022. The pretax margin decreased from 7.44% in 2023 to 6.85% in 2024. This trend suggests that the company's ability to generate profits before taxes relative to its total revenue has been variable. A rising pretax margin typically indicates improved operational efficiency and cost management, while a declining margin may signal increased expenses or declining revenue. Further analysis of the company's financial performance and cost structure is recommended to understand the factors driving these fluctuations and to assess the company's overall profitability and financial health.