Kennametal Inc (KMT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 167,631 | 159,133 | 175,920 | 181,852 | 183,211 | 195,218 | 201,171 | 216,636 | 227,071 | 220,311 | 204,852 | 177,538 | 107,053 | 69,421 | 69,578 | 4,412 | 36,499 | 103,456 | 147,735 | 272,203 |
| Long-term debt | US$ in thousands | 545,900 | 549,900 | 546,400 | 519,100 | 527,400 | 538,200 | 516,300 | 505,300 | 536,100 | 586,000 | 636,500 | 641,600 | 644,200 | 628,400 | 643,500 | 643,400 | 630,200 | 623,100 | 630,800 | 627,600 |
| 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 |
| Return on total capital | 9.33% | 8.77% | 9.59% | 10.22% | 10.16% | 10.76% | 11.39% | 12.69% | 12.69% | 11.56% | 10.49% | 9.03% | 5.42% | 3.64% | 3.62% | 0.24% | 1.96% | 5.49% | 7.63% | 14.13% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $167,631K ÷ ($545,900K + $1,249,880K)
= 9.33%
Kennametal Inc's return on total capital has shown some fluctuations over the past few quarters. In the most recent quarter ending June 30, 2024, the return on total capital stood at 9.33%, indicating the company generated a return of 9.33% on the total capital employed in its operations. This represents a slight increase from the previous quarter's return of 8.77% (Mar 31, 2024).
Looking further back, the return on total capital has varied between 3.62% (Mar 31, 2021) and a high of 14.13% (Sep 30, 2019) over the past few years. The company experienced a significant decline in return on total capital in the quarters ending Dec 31, 2021, and Mar 31, 2021. However, the return has shown signs of recovery since then, with an upward trend in the recent quarters.
Despite some fluctuations in the return on total capital, Kennametal Inc has mostly been able to generate returns above 10% in the majority of the quarters, indicating efficient utilization of its capital in generating profits. Investors and stakeholders may view the company's ability to maintain a relatively stable and healthy return on total capital as a positive sign of operational efficiency and profitability.