Kyndryl Holdings Inc (KD)

Short-term

Turnover ratios

Kyndryl Holdings Inc's activity ratios provide insight into the efficiency of the company's operations.

1. Inventory Turnover:
- Kyndryl's inventory turnover has fluctuated over the years, ranging from 9.62 to 15.63 times.
- A higher inventory turnover indicates that the company is selling its inventory quickly, which is generally positive.
- The increasing trend in recent periods suggests improved inventory management and sales effectiveness.

2. Receivables Turnover:
- Kyndryl's receivables turnover has varied between 8.07 and 52.10 times, showing significant fluctuations.
- A higher receivables turnover ratio indicates that the company is collecting its receivables faster.
- The sharp increase in the receivables turnover in March 2025 could be due to changes in credit policies or collection efforts.

3. Payables Turnover:
- The payables turnover ratio for Kyndryl has ranged from 8.17 to 21.35 times.
- A higher payables turnover ratio reflects that the company is paying off its suppliers more frequently.
- The decreasing trend in payables turnover could indicate changes in payment terms or supplier relationships.

4. Working Capital Turnover:
- Kyndryl's working capital turnover has experienced significant fluctuations, with values ranging from 12.86 to 273.06 times.
- A higher working capital turnover indicates efficient use of working capital to generate sales.
- The substantial variation in the working capital turnover highlights changes in the company's working capital management efficiency.

Overall, analyzing these activity ratios provides valuable insights into Kyndryl's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital.

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Average number of days

Kyndryl Holdings Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows fluctuations over the years. In December 2020 and December 2023, Kyndryl held inventory for approximately 29 days and 24 days respectively. A decrease from December 2020 to December 2023 suggests improved inventory turnover efficiency.
- However, DOH increased to 37.93 days in March 2022 and decreased to 23.35 days in December 2022. The recent increase to 29.94 days in March 2024 and stable ratio in June and September 2024 may indicate potential issues in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- Kyndryl's DSO shows some variability over the years. The company took around 27 days to collect sales in December 2020, which increased to 45.25 days in March 2022 before decreasing to 7.01 days in March 2025.
- Fluctuations in DSO may indicate changes in the company's credit policies, collection efficiency, or changes in customer payment behavior. A decrease in DSO from March 2022 to March 2025 may suggest improved accounts receivable management.

3. Number of Days of Payables:
- Kyndryl had around 19 days of payables in December 2020, which increased to around 44.66 days in March 2023 but decreased to 34.68 days in December 2024.
- A longer payable period indicates that the company is taking more time to pay its suppliers, which can be interpreted as a favorable position for the company, considering that the company can hold onto cash longer.

Overall, monitoring these activity ratios helps stakeholders understand the efficiency and effectiveness of Kyndryl's inventory management, accounts receivables collection, and payment practices to suppliers.

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Long-term

Kyndryl Holdings Inc's Fixed Asset Turnover ratio is a measure of how efficiently the company is generating sales from its fixed assets. The trend analysis shows a fluctuating ratio over the years, indicating varying efficiency in utilizing fixed assets to generate revenue. The ratio improved from March 2021 to September 2022, showcasing an increase in efficiency, but slightly declined towards the end of the period.

On the other hand, the Total Asset Turnover ratio reflects how effectively the company is utilizing all its assets to generate revenue. The ratio experienced a decreasing trend from December 2020 to March 2024, suggesting a decrease in efficiency in generating sales relative to the total assets held. However, there was a significant spike in the ratio by March 2025, signifying a sudden improvement in asset utilization efficiency.

Overall, the analysis of Kyndryl Holdings Inc's long-term activity ratios indicates that while there have been fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios, highlighting periods of improved and deteriorated efficiency in asset utilization, the company should focus on managing its assets more effectively to consistently generate higher sales levels.