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
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.