Revenue Analysis
Reviewing the Total and Operating Revenues, KNX has shown fluctuating but generally increasing revenue over the last three years. The Operating Revenue varied from approximately $1.55 billion in 2023-06-30, peaking at $1.82 billion in 2024-03-31, demonstrating growth. Gross Profit has similarly increased, from $302.8 million in 2023-06-30 to approximately $239.7 million in 2024-03-31, despite a dip indicating variability in cost management or sales efficiency.
Cost Management
Cost of Revenue and Operating Expenses have been significant components of KNX’s financial structure. The Cost of Revenue increased significantly from $1.25 billion on 2023-06-30 to $1.58 billion by 2024-03-31, highlighting rising costs associated with revenue generation. Operating Expenses reflect substantial values but less variability, indicating stable but high operating costs throughout the periods.
Profitability Analysis
EBITDA and Operating Income are crucial indicators of profitability, with EBITDA peaking at $293.5 million in 2023-09 and then slightly reducing. Operating Income showed a similar peak and subsequent decrease. Pretax Income fluctuated drastically, with significant lows in 2023-12, and Net Income mirrored these changes, suggesting volatilities possibly due to operational or market conditions.
Cash Flow Indicators
Reconciled Depreciation remained relatively steady, indicating consistent capital expenditure treatment. Interest Expense, however, saw increases, suggesting rising debt levels or higher interest rates affecting the company’s finance costs.
Taxation
Tax Rates varied across the periods reflecting changes in tax obligations, with noted Tax Provisions showing spikes and reductions in tandem with pre-tax profitability. The Tax Effect of Unusual Items displayed crucial deductions particularly in 2024-03-31, influencing net tax impacts.
Shareholder Metrics
Diluted and Basic EPS figures showcase fluctuations, directly correlating with the Net Income changes. From negative EPS values in 2023-12 to significantly positive ones in 2023-09 (0.37), shareholder earnings per share reflect the company’s operational and financial adjustments over time.
Conclusion
KNX exhibits a mixed financial performance over the three-year span, with growth in revenue coupled with significant cost and tax variances affecting profitability. Stability in operational execution, cost management, and perhaps strategic financial planning can be areas of focus to enhance profitability and shareholder value.