Kennametal Inc (KMT)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 109,323 | 108,568 | 121,529 | 120,320 | 118,459 | 123,742 | 127,100 | 136,622 | 144,624 | 138,015 | 124,341 | 112,308 | 54,435 | 10,228 | -8,476 | -33,803 | -5,662 | 65,422 | 131,055 | 191,692 |
| 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 |
| ROA | 4.37% | 4.31% | 4.78% | 4.79% | 4.65% | 4.75% | 4.93% | 5.43% | 5.62% | 5.19% | 4.76% | 4.31% | 2.04% | 0.39% | -0.32% | -1.32% | -0.19% | 2.58% | 5.00% | 7.37% |
June 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $109,323K ÷ $2,503,760K
= 4.37%
Kennametal Inc's Return on Assets (ROA) has shown fluctuation over the past several quarters. The ROA was relatively stable around 4-5% from December 2019 to September 2022, indicating the company was generating positive returns on its assets during that period.
In the most recent quarters, the ROA has decreased significantly, particularly from December 2022 to June 2023, where it dropped from 4.93% to 2.04%. This could suggest a decline in the company's profitability relative to its assets during that time.
Furthermore, the ROA turned negative in the latter half of 2020, reaching its lowest point in March 2021 at -0.32%. This indicates that the company's assets were not generating sufficient earnings to cover its expenses during that period.
Overall, the downward trend in ROA from the latter half of 2022 to the most recent quarters may raise concerns about Kennametal Inc's ability to effectively utilize its assets to generate profits. Analysts and investors may want to investigate the factors contributing to this trend and assess the company's strategies to improve its profitability in the future.