Kennametal Inc (KMT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,249,880 | 1,264,560 | 1,287,820 | 1,260,360 | 1,275,450 | 1,276,020 | 1,250,170 | 1,201,400 | 1,252,580 | 1,320,120 | 1,316,020 | 1,324,950 | 1,329,610 | 1,276,410 | 1,279,150 | 1,225,390 | 1,229,880 | 1,260,620 | 1,306,170 | 1,298,570 |
| ROE | 8.75% | 8.59% | 9.44% | 9.55% | 9.29% | 9.70% | 10.17% | 11.37% | 11.55% | 10.45% | 9.45% | 8.48% | 4.09% | 0.80% | -0.66% | -2.76% | -0.46% | 5.19% | 10.03% | 14.76% |
June 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $109,323K ÷ $1,249,880K
= 8.75%
Kennametal Inc's return on equity (ROE) has shown fluctuations over the periods mentioned. The ROE ranged from negative figures to double-digit percentages, indicating varying levels of profitability and efficiency in utilizing shareholders' equity.
In recent periods, the ROE has generally been positive, with the highest figure of 11.55% recorded in the second quarter of 2022. It is important to note that the ROE has displayed a declining trend in the last few quarters, dropping from 9.44% in December 2023 to 8.75% in June 2024.
The decreasing trend in ROE may raise concerns about the company's ability to generate profit from the equity invested by shareholders. Further analysis is necessary to understand the factors contributing to the fluctuations in ROE and whether they are sustainable or temporary in nature.