Kennametal Inc (KMT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 156,934 | 182,275 | 175,170 | 172,027 | 183,261 | 184,424 | 193,500 | 198,013 | 198,395 | 203,751 | 213,010 | 227,398 | 238,298 | 237,745 | 222,698 | 228,769 | 182,335 | 179,018 | 221,841 | 149,047 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 12.22% | 14.74% | 14.36% | 13.47% | 14.66% | 14.58% | 15.03% | 15.71% | 15.55% | 15.97% | 17.04% | 18.93% | 19.02% | 18.01% | 16.92% | 17.27% | 13.71% | 14.03% | 17.34% | 12.16% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $156,934K ÷ ($—K + $1,283,980K)
= 12.22%
The analysis of Kennametal Inc.'s return on total capital (ROTC) across the provided periods reveals fluctuations reflecting variations in operational efficiency and capital utilization over time. Starting from a figure of 12.16% as of September 30, 2020, the ROTC experienced a notable increase, reaching 17.34% at the end of 2020, indicating enhanced profitability relative to the company’s total capital base.
In the first quarter of 2021, the ROTC declined slightly to 14.03% but remained relatively stable through mid-2021, with a marginal decrease to 13.71% in June. Toward the end of 2021, the indicator recovered to 16.92%, and continued upward momentum was observed into 2022, reaching a peak of 19.02% as of June 30, 2022. During the latter part of 2022, the ROTC hovered just below this peak at 18.93%, before decreasing to 17.04% by the end of December 2022.
The trend from early 2023 indicates a gradual decline, with the ROTC falling to 15.97% as of March 31, 2023, and further to 15.55% by June 30, 2023. The third quarter of 2023 saw a slight recovery to 15.71%. However, the subsequent periods depicted a downward trajectory, with the ROTC decreasing to 15.03% at the end of 2023, and then further to 14.58% in March 2024, and 14.66% in June 2024. The decline continued into the third quarter of 2024, reaching 13.47%.
In the latest data, the ROTC showed signs of stabilization, with the value increasing slightly to 14.36% in December 2024, and then a minor rise to 14.74% in the first quarter of 2025. A subsequent decline was observed in the second quarter of 2025, with the ROTC falling to 12.22%.
Overall, the period from late 2020 to mid-2022 reflects a significant upward trend, indicative of improving profitability and effective capital deployment during this phase. Conversely, the subsequent trend from late 2022 through mid-2025 indicates a gradual decline in ROTC, suggesting potential challenges in maintaining previous levels of efficiency or external market pressures impacting overall profitability relative to total capital employed.