showing the working

← Kennametal

The business behind the dividend

MeasureKMTMedianFormula
Return on equity21.8%10.6%Net income ÷ shareholders’ equity
Return on capital employed21.0%10.0%Operating income ÷ (equity + total debt)
Owner earnings$408.64m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-80.91m$155.08mOperating cash flow − capital expenditure
Operating margin20.1%14.3%Operating income ÷ revenue
Net margin14.5%10.1%Net income ÷ revenue
Debt to equity0.44x0.73xTotal debt ÷ shareholders’ equity
Interest cover16.54x4.22xOperating income ÷ interest expense
Current ratio2.62x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital0.63x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion-0.01x1.66xOperating cash flow ÷ net income
Accruals10.9%-3.1%(Net income − operating cash flow) ÷ total assets

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2026202520242023202220212020201920182017Median
Return on equity21.8%7.3%8.7%9.3%11.5%4.1%-0.5%18.1%16.8%4.8%8.7%
Return on capital employed21.0%7.6%9.2%10.3%11.8%5.3%1.2%17.1%13.3%5.5%9.2%
Operating margin20.1%7.3%8.3%9.3%10.8%5.5%1.2%13.8%12.3%4.6%8.3%
Net margin14.5%4.7%5.3%5.7%7.2%3.0%-0.3%10.2%8.5%2.4%5.3%
Debt to equity0.44x0.46x0.48x0.47x0.47x0.45x0.48x0.44x0.83x0.68x0.47x
Current ratio2.62x2.46x2.41x2.37x2.11x2.30x1.60x2.58x1.74x2.41x2.37x
Cash conversion-0.01x2.24x2.53x2.18x-1.25x4.33x1.24x1.39x3.98x2.18x