Kennametal Inc (KMT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,249,880 | 1,275,450 | 1,252,580 | 1,329,610 | 1,229,880 |
| Debt-to-equity ratio | 0.44 | 0.41 | 0.43 | 0.48 | 0.51 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $545,900K ÷ $1,249,880K
= 0.44
The debt-to-equity ratio of Kennametal Inc has shown a general decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio has improved from 0.51 in 2020 to 0.44 in 2024. This trend suggests that the company has been relying more on equity financing rather than debt financing for its operations, which can signal a lower financial risk and improved solvency. It is worth noting that a lower debt-to-equity ratio typically signifies a lower reliance on debt to fund operations and may indicate a healthier balance sheet. Overall, the decreasing trend in the debt-to-equity ratio for Kennametal Inc reflects a positive financial performance and improved stability over the years.