Kennametal Inc (KMT)

Solvency ratios

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
Debt-to-assets ratio 0.22 0.22 0.21 0.21 0.21 0.21 0.20 0.20 0.21 0.22 0.24 0.25 0.24 0.24 0.25 0.25 0.21 0.25 0.24 0.24
Debt-to-capital ratio 0.30 0.30 0.30 0.29 0.29 0.30 0.29 0.30 0.30 0.31 0.33 0.33 0.33 0.33 0.33 0.34 0.34 0.33 0.33 0.33
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
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

Kennametal Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.20 to 0.25 over the past few quarters, suggesting that the company has maintained a conservative level of debt compared to its total assets.

The debt-to-capital ratio has similarly shown consistency, hovering around 0.29 to 0.34 during the period under review. This indicates that Kennametal relies on debt for approximately 29% to 34% of its capital structure, with the remainder funded by equity.

The debt-to-equity ratio has shown a slight upward trend, increasing from 0.41 to 0.53 over the past few quarters. This suggests that the company is increasingly relying on debt financing relative to equity, which could indicate higher financial risk.

The financial leverage ratio has fluctuated, ranging from 1.97 to 2.09. A higher financial leverage ratio signifies that a greater proportion of the company's assets are financed through debt rather than equity.

Overall, Kennametal Inc's solvency ratios reflect a stable but slightly increasing reliance on debt for financing, which could potentially increase the company's financial risk in the long run. It would be important for the company to closely monitor its debt levels and ensure that it maintains a healthy balance between debt and equity to support its long-term financial stability.

Coverage ratios

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
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

Kennametal Inc's interest coverage ratio has shown fluctuations over the past few quarters. The interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has generally been on an upward trend from the end of 2020 to mid-2022, indicating the company's improving ability to cover interest expenses with its operating income.

However, there was a significant decline in the interest coverage ratio in the second half of 2022 and throughout 2023. This decline could raise concerns about Kennametal Inc's ability to comfortably cover its interest obligations with its earnings during that period.

It is worth noting that while the interest coverage ratio dipped below 1 in some quarters in 2020 and 2021, suggesting potential challenges in meeting interest payments with operating income alone, the company managed to recover and significantly improve its interest coverage in subsequent periods.

Overall, Kennametal Inc's interest coverage ratio has displayed variability, and investors and analysts may want to monitor this ratio closely to assess the company's ongoing financial health and its ability to service its debt obligations.