Kennametal (Kennametal) ROCE % : 5.52% (As of Dec. 2023)

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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 Dec. 2023 was 5.52%.

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.

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Kennametal ROCE % Chart

Kennametal Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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16.26

1.71

5.08

10.78

8.96

Kennametal Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															6.81	9.81	10.26	8.56	5.52

Kennametal ROCE % Calculation

Kennametal's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	188.117	/	( ( (2573.524 - 485.649)	+	(2547.234 - 433.975) )	/ 2 )
	=	188.117	/	( (2087.875	+	2113.259)	/ 2 )
	=	188.117	/	2100.567
	=	8.96 %

Kennametal's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	116.664	/	( ( (2512.76 - 419.846)	+	(2544.352 - 414.108) )	/ 2 )
	=	116.664	/	( ( 2092.914	+	2130.244 )	/ 2 )
	=	116.664	/	2111.579
	=	5.52 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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 (Kennametal) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kennametal Inc (NYSE:KMT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KM3:Germany

Address

525 William Penn Place, Suite 3300, Pittsburgh, PA, USA, 15219

Website

https://www.kennametal.com

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 a majority of revenue from the United States.

Executives

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
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
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
Lawrence W Stranghoener	director	2035 KIMBERLY COURT, PLYMOUTH MN 55447