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Kennametal Interest Coverage

: 8.44 (As of Mar. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Kennametal's Operating Income for the three months ended in Mar. 2022 was $54 Mil. Kennametal's Interest Expense for the three months ended in Mar. 2022 was $-6 Mil. Kennametal's interest coverage for the quarter that ended in Mar. 2022 was 8.44. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Kennametal's Interest Coverage or its related term are showing as below:

KMT' s Interest Coverage Range Over the Past 10 Years
Min: 2.83   Med: 7.9   Max: 15.3
Current: 8.33


KMT's Interest Coverage is ranked worse than
68.47% of 2157 companies
in the Industrial Products industry
Industry Median: 17.59 vs KMT: 8.33

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Kennametal Interest Coverage Historical Data

The historical data trend for Kennametal's Interest Coverage 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 Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.05 10.39 3.62 2.83 8.33

Kennametal Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 9.72 8.67 6.66 8.44 9.52

Competitive Comparison

For the Tools & Accessories subindustry, Kennametal's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Kennametal Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Kennametal's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kennametal's Interest Coverage falls into.



Kennametal Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Kennametal's Interest Coverage for the fiscal year that ended in Jun. 2021 is calculated as

Here, for the fiscal year that ended in Jun. 2021, Kennametal's Interest Expense was $-46 Mil. Its Operating Income was $131 Mil. And its Long-Term Debt & Capital Lease Obligation was $629 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2021 )/Interest Expense (A: Jun. 2021 )
=-1*131.229/-46.375
=2.83

Kennametal's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Kennametal's Interest Expense was $-6 Mil. Its Operating Income was $54 Mil. And its Long-Term Debt & Capital Lease Obligation was $627 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*54.311/-6.436
=8.44

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Kennametal  (NYSE:KMT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Kennametal Interest Coverage Related Terms

Thank you for viewing the detailed overview of Kennametal's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Kennametal Business Description

Kennametal logo
Traded in Other Exchanges
Address
525 William Penn Place, Suite 3300, Pittsburgh, PA, USA, 15219-2706
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
Chowbey Sanjay officer: Vice President 525 WILLIAM PENN PLACE SUITE 3300 PITTSBURGH PA 15219
Stranghoener Lawrence W director 2035 KIMBERLY COURT PLYMOUTH MN 55447
Cardenas Franklin officer: Vice President 525 WILLIAM PENN PLACE SUITE 3300 PITTSBURGH PA 15219
Audia Damon J officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Reilly Carlonda R. officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Martin Lorraine M director 1121 SPRING LAKE DRIVE ITASCA IL 60143
Port Ronald L officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Alvarado Joseph director 705 N. BAR Y ROAD P.O. BOX 11368 JACKSON WY 83002
Patel Sagar A director 1000 EAST DRAKE ROAD FORT COLLINS CO 80525
Van Gaalen Jan Kees officer: Vice President 10205 WESTHEIMER, SUITE 1000 HOUSTON TX 77042
Bacchus Judith L officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Keating Michelle R officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Rossi Christopher officer: President and CEO C/O KENNAMETAL INC. 525 WILLIAM PENN PLACE, 33RD FLOOR PITTSBURGH PA 15219
Watson Patrick S officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Lambert William M director C/O MSA SAFETY 1000 CRANBERRY WOODS DRIVE CRANBERRY TWP PA 16066

Kennametal Headlines

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