Kyndryl Holdings Inc (KD)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020
Receivables turnover		52.10	10.99	10.62	10.83	10.04	9.93	10.12	11.36	11.18	11.18	11.06	9.39	8.07	8.19	10.90	11.96	11.95	13.37
DSO	days	7.01	33.20	34.38	33.70	36.36	36.77	36.08	32.12	32.65	32.66	33.00	38.88	45.25	44.59	33.49	30.52	30.54	27.30

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 52.10
= 7.01

The Days Sales Outstanding (DSO) ratio of Kyndryl Holdings Inc has shown some fluctuations over the years based on the provided data. DSO measures the average number of days a company takes to collect revenue after a sale is made.

From December 31, 2020, to March 31, 2021, there was a slight increase in DSO from 27.30 days to 30.54 days. This indicates that it took the company slightly longer to collect its accounts receivable during this period.

From March 31, 2021, to December 31, 2021, there was a significant increase in DSO to 44.59 days, suggesting that the company faced challenges in collecting its receivables promptly during this period.

Subsequently, from December 31, 2021, to March 31, 2025, there was a downward trend in DSO, reaching a low of 7.01 days by March 31, 2025. This significant improvement indicates that the company enhanced its efficiency in collecting payments from customers.

Overall, fluctuations in DSO can be influenced by various factors such as changes in credit policies, collection processes, industry trends, and economic conditions. Kyndryl Holdings Inc's management should monitor DSO closely to ensure efficient management of accounts receivable and cash flow.