Kennametal Inc (KMT)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 93,125 | 108,715 | 96,209 | 101,389 | 109,323 | 108,568 | 121,529 | 120,320 | 118,459 | 123,741 | 127,099 | 136,621 | 144,623 | 138,015 | 124,341 | 112,308 | 54,435 | 10,228 | -8,476 | -33,803 |
| 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 |
| ROA | 3.66% | 4.37% | 3.95% | 4.02% | 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% |
June 30, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $93,125K ÷ $2,545,410K
= 3.66%
The analysis of Kennametal Inc.'s return on assets (ROA) over the specified period reveals notable trends and shifts in the company's asset efficiency and profitability. Initially, at the end of September 2020, the ROA was negative at -1.32%, indicating that the company was experiencing losses relative to its asset base during that period. This negative return persisted into December 2020, with a slight improvement to -0.32%, suggesting some recovery in profitability.
From the first quarter of 2021, a significant turnaround in ROA was observed, transitioning to a positive figure of 0.39%. This upward trajectory continued through the subsequent periods, with the ROA reaching 2.04% by June 2021 and further increasing to 4.31% by September 2021. The year 2022 maintained a positive and gradually improving trend, with ROA values of 4.76% at the end of 2021, rising to 5.19% in March 2022, and peaking at 5.62% in June 2022. Throughout the latter part of 2022 and the beginning of 2023, there was a slight decline, with ROA figures of 5.43% in September 2022, 4.93% in December 2022, and 4.75% in March 2023.
The trend continued with minor fluctuations in 2023, maintaining ROA levels around the 4.65% to 4.79% range, with the latest data point at September 2023 showing a ROA of 4.79%. In the first quarter of 2024, the ROA slightly decreased to 4.31%, followed by modest changes to 4.37% in June 2024 and 4.02% in September 2024.
Looking into the near-term projections, the ROA appears to have a downward trajectory, with the values at December 2024 and March 2025 recorded at 3.95% and 4.37%, respectively. The latest available data indicates a decrease to 3.66% at June 2025, highlighting a potential moderation in asset profitability.
Overall, the pattern demonstrates a recovery from negative returns in 2020 toward stable profitability levels in the subsequent years, with ROA generally remaining within the 4% to 5.6% range over the last few periods. The recent downward movement suggests potential challenges or adjustments affecting the company's efficiency in utilizing its assets to generate earnings.