Kyndryl Holdings Inc (KD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 942,000 | 1,501,000 | 1,325,000 | 1,269,000 | 1,553,000 | 1,688,000 | 1,408,000 | 1,507,000 | 1,847,000 | 2,002,000 | 1,888,000 | 1,871,000 | 2,134,000 | 2,223,000 | 735,000 | 29,000 | -24,000 | 24,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 48,000 | — |
| Total current liabilities | US$ in thousands | 60,000 | 3,935,000 | 4,249,000 | 4,231,000 | 4,589,000 | 5,152,000 | 4,485,000 | 4,591,000 | 4,868,000 | 4,607,000 | 4,579,000 | 4,609,000 | 5,058,000 | 4,457,000 | 3,709,000 | 3,752,000 | 3,752,000 | 3,910,000 |
| Cash ratio | 15.70 | 0.38 | 0.31 | 0.30 | 0.34 | 0.33 | 0.31 | 0.33 | 0.38 | 0.43 | 0.41 | 0.41 | 0.42 | 0.50 | 0.20 | 0.01 | 0.01 | 0.01 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($942,000K
+ $—K)
÷ $60,000K
= 15.70
The cash ratio of Kyndryl Holdings Inc has shown a fluctuating trend over the period from December 31, 2020, to March 31, 2025. The ratio stood at a very low level of 0.01 for the first three quarters of 2021, indicating that the company had minimal cash on hand to cover its current liabilities.
However, there was a significant improvement in the cash ratio as of September 30, 2021, where it jumped to 0.20, suggesting that Kyndryl had increased its cash reserves relative to its short-term obligations. This positive trend continued, with the ratio increasing further to 0.50 by December 31, 2021, indicating a substantial improvement in liquidity.
The cash ratio remained relatively stable around the 0.40 range from March 31, 2022, to September 30, 2022, reflecting Kyndryl's effective management of its cash position. Although there was a slight decrease in the ratio in the following quarters, it stayed above 0.30, indicating that the company maintained a healthy level of cash to cover its short-term liabilities.
However, there was a significant spike in the cash ratio as of March 31, 2025, reaching an exceptionally high level of 15.70. Such an unusually high cash ratio may signify an aberration in the financial data or a significant increase in cash reserves compared to the company's current liabilities.
Overall, Kyndryl Holdings Inc demonstrated varying levels of liquidity over the analyzed period, with notable improvements in managing its cash position, especially evident from the substantial increase in the cash ratio by December 31, 2021, and the unusually high ratio as of March 31, 2025, which warrants further investigation for understanding the underlying reasons.
Peer comparison
Mar 31, 2025