Kennametal Inc (KMT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 167,631 | 159,133 | 175,920 | 181,852 | 183,211 | 195,218 | 201,171 | 216,636 | 227,071 | 220,311 | 204,852 | 177,538 | 107,053 | 69,421 | 69,578 | 4,412 | 36,499 | 103,456 | 147,735 | 272,203 |
| Interest expense (ttm) | US$ in thousands | 27,002 | 27,322 | 28,292 | 28,460 | 28,497 | 28,097 | 26,786 | 26,231 | 25,914 | 25,769 | 40,261 | 42,118 | 46,375 | 51,143 | 38,112 | 37,850 | 35,153 | 32,522 | 32,729 | 32,778 |
| Interest coverage | 6.21 | 5.82 | 6.22 | 6.39 | 6.43 | 6.95 | 7.51 | 8.26 | 8.76 | 8.55 | 5.09 | 4.22 | 2.31 | 1.36 | 1.83 | 0.12 | 1.04 | 3.18 | 4.51 | 8.30 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $167,631K ÷ $27,002K
= 6.21
The interest coverage ratio for Kennametal Inc has been fluctuating over the past few quarters. The ratio indicates the company's ability to meet its interest obligations with its operating income.
From December 2019 to March 2021, the interest coverage ratio gradually declined from 8.30 to 1.36, indicating a potential deterioration in the company's ability to cover its interest payments with its operating income. However, from June 2021 to June 2022, there was a significant improvement in the ratio, reaching a peak of 8.76 in September 2022.
Subsequently, the ratio experienced a slight decrease but remained relatively stable around 6.00 from December 2022 to June 2024. This suggests that the company has maintained a reasonable ability to cover its interest expenses with its operating income during this period.
Overall, the interest coverage ratio for Kennametal Inc demonstrates some variability, but recent trends show a level of stability in the company's ability to meet its interest obligations with its earnings.