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KMT (Kennametal) ROCE % : 11.72% (As of Jun. 2024)


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What is Kennametal ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Kennametal's annualized ROCE % for the quarter that ended in Jun. 2024 was 11.72%.


Kennametal ROCE % Historical Data

The historical data trend for Kennametal's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kennametal ROCE % Chart

Kennametal Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.71 5.08 10.78 8.96 8.14

Kennametal Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.26 8.56 5.52 6.67 11.72

Kennametal ROCE % Calculation

Kennametal's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2024 )  (A: Jun. 2023 )(A: Jun. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2024 )  (A: Jun. 2023 )(A: Jun. 2024 )
=170.922/( ( (2547.234 - 433.975) + (2503.758 - 415.961) )/ 2 )
=170.922/( (2113.259+2087.797)/ 2 )
=170.922/2100.528
=8.14 %

Kennametal's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2024 )  (Q: Mar. 2024 )(Q: Jun. 2024 )
=245.696/( ( (2518.645 - 413.245) + (2503.758 - 415.961) )/ 2 )
=245.696/( ( 2105.4 + 2087.797 )/ 2 )
=245.696/2096.5985
=11.72 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2024) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kennametal  (NYSE:KMT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.


Kennametal ROCE % Related Terms

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Kennametal Business Description

Traded in Other Exchanges
N/A
Address
525 William Penn Place, Suite 3300, Pittsburgh, PA, USA, 15219
Kennametal Inc is a manufacturer of metalworking tools and wear-resistant engineered components and coatings. The company operates in two business segments; Metal Cutting and Infrastructure. It generates maximum revenue from the Metal Cutting segment. The Metal Cutting segment develops and manufactures high-performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy, and transportation. Geographically, it derives maximum revenue from the United States and the rest from Germany, China, Canada, India, Italy, and other countries.
Executives
John Wayne Witt officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Sanjay Chowbey officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Michelle R Keating officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
William J. Harvey director 26 PHEASANT'S RIDGE SOUTH, GREENVILLE DE 19807
Cindy L Davis director 2635 SW GRENWOLDE PLACE, PORTLAND OR 97201
William M Lambert director C/O MSA SAFETY, 1000 CRANBERRY WOODS DRIVE, CRANBERRY TWP PA 16066
Joseph Alvarado director 705 N. BAR Y ROAD, P.O. BOX 11368, JACKSON WY 83002
Christopher Rossi officer: President and CEO C/O KENNAMETAL INC., 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Franklin Cardenas officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Steven H Wunning director 471 EAST HIGH POINT DRIVE, PEORIA IL 61614
Lorraine M Martin director 1121 SPRING LAKE DRIVE, ITASCA IL 60143
Paul Sternlieb director 70 WEST MADISON SUITE 4400, CHICAGO IL 60602
Judith L Bacchus officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Patrick S Watson officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Ronald L Port officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219