Kennametal Inc (KMT)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 545,900 | 527,400 | 536,100 | 644,200 | 630,200 |
| Total assets | US$ in thousands | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 | 3,037,590 |
| Debt-to-assets ratio | 0.22 | 0.21 | 0.21 | 0.24 | 0.21 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $545,900K ÷ $2,503,760K
= 0.22
The debt-to-assets ratio of Kennametal Inc has remained relatively stable over the past five years, ranging from 0.21 to 0.24. This ratio indicates the proportion of the company's assets financed by debt. A lower ratio suggests less reliance on debt financing, while a higher ratio indicates higher leverage.
In the most recent period, as of June 30, 2024, the debt-to-assets ratio stood at 0.22, showing a slight increase compared to the previous year. This uptick may be due to various factors such as increased borrowing, acquisitions, or a decrease in total assets.
Overall, the trend in Kennametal Inc's debt-to-assets ratio suggests a conservative approach to leveraging its assets. Maintaining a relatively low debt-to-assets ratio indicates a lower financial risk and potentially a stronger financial position in terms of solvency and stability. However, it is essential to monitor changes in this ratio over time to assess the company's evolving capital structure and financial health.