Kennametal Inc (KMT)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,545,410 | 2,503,760 | 2,547,230 | 2,573,520 | 2,665,760 |
| Total stockholders’ equity | US$ in thousands | 1,283,980 | 1,249,880 | 1,275,450 | 1,252,580 | 1,329,610 |
| Financial leverage ratio | 1.98 | 2.00 | 2.00 | 2.05 | 2.00 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,545,410K ÷ $1,283,980K
= 1.98
The financial leverage ratio for Kennametal Inc. over the specified period exhibits relatively minimal fluctuation, indicating a consistent approach to leveraging debt within the company's capital structure. As of June 30, 2021, the ratio was 2.00, suggesting that the company's total assets were financed roughly equally by debt and equity, with debt constituting approximately 50% of the total capital structure. This ratio experienced a slight increase by June 30, 2022, reaching 2.05, which implies a marginal increase in the company's reliance on debt relative to equity. However, in subsequent years, the ratio stabilized at 2.00 through June 30, 2023 and June 30, 2024, reflecting a steady state of leverage. By June 30, 2025, the ratio slightly declined to 1.98, indicating a subtle reduction in leverage, approaching the initial levels observed in 2021. Overall, the data suggests that Kennametal Inc. has maintained a consistent leverage position with minor strategic adjustments, avoiding significant increases or decreases that could signal substantial shifts in financial risk management.