Kennametal Inc (KMT)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.30	0.30	0.30	0.29	0.29	0.30	0.29	0.30	0.30	0.31	0.33	0.33	0.33	0.33	0.33	0.34	0.34	0.33	0.33	0.33

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $545,900K ÷ ($545,900K + $1,249,880K)
= 0.30

Kennametal Inc's debt-to-capital ratio has been relatively stable over the past several quarters, hovering around the 0.30 mark. This ratio indicates that approximately 30% of the company's capital structure is financed through debt, while the remaining 70% is funded through equity. The consistent nature of this ratio suggests that Kennametal has been maintaining a balanced mix of debt and equity in its capital structure. However, there was a slight increase in the ratio from 0.29 in September 2023 to 0.34 in September 2020, which may indicate a slight increase in leverage during that period. Overall, the stability of the debt-to-capital ratio indicates that Kennametal has been managing its debt levels effectively, without relying too heavily on borrowed funds.