Kyndryl Holdings Inc (KD)

Short-term

Turnover ratios

Kyndryl Holdings Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The company did not report inventory turnover for the periods listed, indicating a lack of specific data on how quickly the company is selling its inventory.

2. Receivables Turnover: The receivables turnover ratio remained relatively stable around 8 times on average during the periods listed. This suggests that Kyndryl efficiently collects its accounts receivable, with customers paying their outstanding balances approximately every 45 to 60 days.

3. Payables Turnover: The payables turnover ratio fluctuated over the periods listed, ranging from 8.17 to 11.30 times. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be beneficial for maintaining good relationships and potentially negotiating favorable credit terms.

4. Working Capital Turnover: The working capital turnover ratio varied significantly, with a notable increase in efficiency from December 2022 to March 2023, but a fluctuating trend thereafter. A higher working capital turnover ratio indicates that Kyndryl is generating more revenue with less working capital, reflecting efficient utilization of resources.

Overall, while the company shows good efficiency in managing its receivables and payables, further analysis of inventory turnover data would provide a more comprehensive understanding of Kyndryl's overall operational efficiency.

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Average number of days

The Days of Inventory on Hand (DOH) for Kyndryl Holdings Inc has shown fluctuations over the past few quarters, ranging from 23.07 days to 35.57 days. A lower DOH indicates that the company is efficiently managing its inventory, while a higher DOH could suggest potential issues with inventory management.

The Days of Sales Outstanding (DSO) have also varied, with values between 40.47 days and 46.02 days. A lower DSO is preferable as it indicates that the company is collecting its accounts receivable quickly. The fluctuations in DSO could signify changes in customer payment patterns or the effectiveness of the company's credit policies.

The Number of Days of Payables has ranged from 32.30 days to 44.66 days. A higher number of days of payables may imply that the company is taking longer to pay its suppliers, which could be advantageous for cash flow management. However, excessively long payment terms could strain relationships with suppliers.

Overall, Kyndryl Holdings Inc should monitor these activity ratios closely to ensure efficient management of inventory, timely collection of accounts receivable, and optimal management of payables to support its financial health and operational efficiency.

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Long-term

Kyndryl Holdings Inc's fixed asset turnover ratio has remained relatively stable over the past seven quarters, fluctuating between 5.86 and 6.79. This indicates that the company generates $6-$7 in revenue for every dollar invested in fixed assets. The consistently high fixed asset turnover ratio suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown consistency, hovering around 1.46 to 1.59 over the same period. This ratio signifies that the company generates $1.46-$1.59 in revenue for every dollar of total assets. The stability of this ratio suggests that Kyndryl is effectively utilizing its total assets to generate sales.

Overall, the analysis of Kyndryl Holdings Inc's long-term activity ratios indicates a consistent and efficient utilization of both fixed and total assets to generate revenue over the analyzed quarters. This stability in asset turnover ratios is a positive indicator of the company's operational efficiency and effective asset management.