Kennametal Inc (KMT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,283,980 | 1,236,870 | 1,219,980 | 1,277,170 | 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 |
| ROE | 7.25% | 8.79% | 7.89% | 7.94% | 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $93,125K ÷ $1,283,980K
= 7.25%
The historical data for Kennametal Inc.’s return on equity (ROE) over the specified period reveals notable fluctuations and a general trend of recovery following a period of decline. At the end of September 2020, the ROE was recorded at -2.76%, indicating a loss relative to shareholders’ equity during that quarter. This negative position persisted into December 2020 at -0.66%, suggesting a slight improvement but still reflecting challenges in generating positive returns on equity.
Starting in the first quarter of 2021, the ROE transitioned into positive territory, reaching 0.80%. This marked the beginning of a consistent upward trajectory that continued through the subsequent quarters. By the third quarter of 2021, the ROE had increased to 8.48%, signifying a significant improvement in profitability and the company's ability to generate returns from shareholders’ investments. This growth continued into December 2021, with ROE reaching 9.45%, and further into March 2022 at 10.45%. During this period, the firm’s operational performance appeared to strengthen, reflecting enhanced efficiency or favorable market conditions.
From mid-2022 onward, the ROE stabilized at elevated levels, peaking at 11.55% in June 2022. Subsequently, a slight decline was observed, with the ROE decreasing marginally to 11.37% in September 2022 and further to approximately 10.17% in December 2022. This downward trend persisted into 2023, with the ROE registering 9.70% in March 2023 and declining gradually to 9.29% in June 2023, before a slight uptick to 9.55% in September 2023. At the end of December 2023, the ROE was recorded at 9.44%.
In the most recent periods, the ROE continued to decline slightly, measured at 8.59% in March 2024 and 8.75% in June 2024. The trend persisted into September 2024 with a ROE of 7.94%, further reducing to 7.89% in December 2024. The data indicates a modest recovery in early 2025, with the ROE increasing to 8.79% in March 2025, but then declining again to 7.25% in June 2025.
Overall, the ROE experienced a significant negative phase during 2020, followed by a strong upward trend through 2021 and into mid-2022. Since then, it has demonstrated a gradual decline, indicating potential challenges in maintaining high profitability levels relative to shareholders’ equity, though the ROE remains positive and indicative of ongoing operational profitability.