Kyndryl Holdings Inc (KD)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,189,000 | 13,667,000 | 14,079,000 | 14,270,000 | 14,498,000 | 14,885,000 | 15,360,000 | |||
| Payables | US$ in thousands | 1,408,000 | 1,477,000 | 1,246,000 | 1,626,000 | 1,774,000 | 1,719,000 | 1,594,000 | 1,486,000 | 1,140,000 | 798,000 |
| Payables turnover | 9.37 | 9.25 | 11.30 | 8.78 | 8.17 | 8.66 | 9.64 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,189,000K ÷ $1,408,000K
= 9.37
The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating how many times during a period the company pays off its suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more often, which could suggest strong liquidity or favorable credit terms.
Based on the data provided for Kyndryl Holdings Inc, we can observe fluctuations in the payables turnover ratio over the quarters. The payables turnover ratio has varied between 8.17 and 11.30 over the last few quarters, indicating some volatility in the company's payment practices.
In the most recent quarter, ending March 31, 2024, the payables turnover ratio was 9.37, showing an improvement compared to the previous quarter's ratio of 9.25. This may suggest that Kyndryl Holdings Inc is managing its accounts payable more efficiently during this period.
When looking at a longer-term trend, we can see that the payables turnover ratio has generally been between 8.17 and 9.64 over the past few quarters. This range indicates relative stability in how Kyndryl Holdings Inc handles its accounts payable over time.
Overall, it is essential for investors and analysts to consider not only the payables turnover ratio but also other financial metrics and qualitative factors to gain a comprehensive understanding of Kyndryl Holdings Inc's financial health and operational efficiency.
Peer comparison
Mar 31, 2024