Kennametal Inc (KMT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,503,760 | 2,518,640 | 2,544,350 | 2,512,760 | 2,547,230 | 2,603,580 | 2,578,600 | 2,516,210 | 2,573,520 | 2,659,510 | 2,610,870 | 2,607,570 | 2,665,760 | 2,614,980 | 2,614,830 | 2,559,000 | 3,037,590 | 2,538,100 | 2,623,030 | 2,599,400 |
| 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 |
| Financial leverage ratio | 2.00 | 1.99 | 1.98 | 1.99 | 2.00 | 2.04 | 2.06 | 2.09 | 2.05 | 2.01 | 1.98 | 1.97 | 2.00 | 2.05 | 2.04 | 2.09 | 2.47 | 2.01 | 2.01 | 2.00 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,503,760K ÷ $1,249,880K
= 2.00
Kennametal Inc's financial leverage ratio has shown some fluctuations over the past few quarters, ranging from 1.97 to 2.09. The financial leverage ratio measures the proportion of a company's debt to its equity, indicating the level of financial risk and the extent to which a company is relying on debt to finance its operations.
A financial leverage ratio of 2.00 suggests that for every dollar of equity, Kennametal Inc has $2.00 of debt. This implies that the company has a moderate level of leverage, as it is using a reasonable amount of debt to support its operations.
The slight fluctuations in the financial leverage ratio may indicate changes in Kennametal Inc's capital structure or borrowing patterns over time. A downward trend in the ratio could suggest the company is reducing its reliance on debt, potentially improving its financial stability. Conversely, an increasing trend may indicate a higher risk of financial distress due to increased debt levels.
Overall, it is important for investors and stakeholders to carefully monitor Kennametal Inc's financial leverage ratio to assess its financial health and risk profile.