Kennametal Inc (KMT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,249,880 | 1,275,450 | 1,252,580 | 1,329,610 | 1,229,880 |
| ROE | 8.75% | 9.29% | 11.55% | 4.09% | -0.46% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $109,323K ÷ $1,249,880K
= 8.75%
Kennametal Inc's return on equity (ROE) has exhibited fluctuating trends over the past five years. In the most recent fiscal year ending June 30, 2024, the ROE stood at 8.75%, a slight decrease from the prior year's 9.29%. However, it remains higher than the 4.09% reported in the fiscal year ending June 30, 2021, and significantly improved from the negative ROE of -0.46% in the fiscal year ending June 30, 2020.
The ROE of Kennametal Inc peaked at 11.55% in the fiscal year ending June 30, 2022, reflecting a strong performance in generating profits relative to shareholders' equity. The downward trend observed in the more recent years may indicate challenges or changes within the company that are impacting its ability to generate returns for shareholders.
It is essential for investors and stakeholders to monitor Kennametal Inc's ROE closely to assess the company's profitability and efficiency in utilizing its equity. Fluctuations in ROE could be indicative of shifts in the company's financial health, management effectiveness, or market conditions that warrant further investigation and analysis.