Kyndryl Holdings Inc (KD)
Fixed asset turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Dec 31, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 16,052,000 | 16,457,000 | 16,824,000 | 16,930,000 | 17,025,000 | 17,326,000 | 17,602,000 | |||
| Property, plant and equipment | US$ in thousands | 2,674,000 | 2,806,000 | 2,646,000 | 2,750,000 | 2,779,000 | 2,762,000 | 2,592,000 | 2,651,000 | 2,923,000 | 3,480,000 |
| Fixed asset turnover | 6.00 | 5.86 | 6.36 | 6.16 | 6.13 | 6.27 | 6.79 |
March 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $16,052,000K ÷ $2,674,000K
= 6.00
Based on the data provided, Kyndryl Holdings Inc's fixed asset turnover has shown relatively consistent performance over the most recent quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
The trend in Kyndryl's fixed asset turnover ratio indicates that for every dollar invested in fixed assets, the company is generating around $6 of revenue. The ratio has been consistently above 6 over the past four quarters, with a slight fluctuation between 5.86 and 6.79.
A high fixed asset turnover ratio generally indicates efficient utilization of fixed assets. Kyndryl's ratio being consistently above 6 suggests that the company is effectively using its fixed assets to generate revenue, potentially through optimizing production processes, improving asset utilization, or managing inventory efficiently.
Overall, based on the trend of the fixed asset turnover ratio, Kyndryl Holdings Inc appears to be effectively leveraging its fixed assets to generate revenue, reflecting operational efficiency in utilizing its asset base to drive sales.
Peer comparison
Mar 31, 2024