Kennametal Inc (KMT)
Debt-to-equity 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 | ||
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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-equity ratio | 0.44 | 0.43 | 0.42 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.43 | 0.44 | 0.48 | 0.48 | 0.48 | 0.49 | 0.50 | 0.53 | 0.51 | 0.49 | 0.48 | 0.48 |
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 some fluctuations over the past few quarters. The ratio has generally been within the range of 0.41 to 0.53, indicating that the company has been utilizing a mix of debt and equity to finance its operations and investments.
Looking at the trend, we can see that the ratio increased from 0.41 in September 2019 to 0.53 in September 2020, before gradually declining to 0.44 in June 2022. It then showed some volatility, fluctuating between 0.41 and 0.48 over the following quarters.
A debt-to-equity ratio of less than 1 typically indicates that the company relies more on equity financing rather than debt, which can be seen in this case. However, it's essential to note that a higher debt-to-equity ratio can also indicate higher financial risk, as it implies a higher level of debt relative to equity.
Overall, Kennametal Inc's debt-to-equity ratio has remained relatively stable over the past few quarters, suggesting a balanced capital structure with moderate reliance on debt financing. However, it would be important to monitor any significant shifts in the ratio in the future, as it could impact the company's financial health and risk profile.