Kennametal Inc (KMT)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 109,323 | 118,459 | 144,623 | 54,434 | -5,661 |
| Total assets | US$ in thousands | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 | 3,037,590 |
| ROA | 4.37% | 4.65% | 5.62% | 2.04% | -0.19% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $109,323K ÷ $2,503,760K
= 4.37%
Kennametal Inc's return on assets (ROA) has shown some fluctuations over the past five years. The ROA was highest in Jun 30, 2022 at 5.62% and lowest in Jun 30, 2020 at -0.19%. The trend indicates an upward trajectory from 2020 to 2022, signaling improving efficiency in generating profits from its assets. However, there was a slight decline in ROA in 2023 and a further decrease in 2024.
Overall, Kennametal Inc's ROA has been positive in recent years, which suggests that the company has been effectively utilizing its assets to generate profits. However, the declining trend in the most recent years could indicate potential challenges in sustaining or improving this efficiency in the future. Further analysis of the company's financial performance and operational strategies may help in understanding the factors influencing the changes in ROA.