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Stock impact report

These Return Metrics Don't Make Kennametal (NYSE:KMT) Look Too Strong [Yahoo! Finance]

Kennametal Inc. (KMT) 
Last kennametal inc. earnings: 2/3 04:01 pm Check Earnings Report
US:NYSE Investor Relations: kennametal.gcs-web.com/investor-overview
Company Research Source: Yahoo! Finance
Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This indicates the company is producing less profit from its investments and its total assets are decreasing. So after glancing at the trends within Kennametal NYSE:KMT ), we weren't too hopeful. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Kennametal: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.089 = US$186m ÷ (US$2.5b - US$416m) (Based on the trailing twelve months to June 2024) So, Kennametal has an ROCE of 8.9%. Ultimately, that's a low return and it under-performs the Machinery industry average of 13%. See our latest analysis for Kennametal In the above chart we have measured Kennametal's prior ROCE agains Show less Read more
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