Kyndryl Holdings Inc (KD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,553,000	1,688,000	1,408,000	1,507,000	1,847,000	2,002,000	1,888,000	1,871,000	2,223,000	735,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	4,589,000	5,152,000	4,485,000	4,591,000	4,868,000	4,607,000	4,579,000	4,609,000	4,457,000	3,632,000
Cash ratio		0.34	0.33	0.31	0.33	0.38	0.43	0.41	0.41	0.50	0.20

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,553,000K + $—K) ÷ $4,589,000K
= 0.34

Based on the data provided, Kyndryl Holdings Inc's cash ratio has fluctuated over the past several quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.

Kyndryl's cash ratio has ranged from 0.20 to 0.50 over the past few quarters, with the latest ratio reported at 0.34 as of March 31, 2024. This indicates that for every dollar of current liabilities, Kyndryl had $0.34 in cash and cash equivalents available to cover those obligations.

The downward trend in the cash ratio from 0.50 in December 2021 to 0.34 in March 2024 may suggest a decreasing ability to cover short-term liabilities with cash on hand. However, it is essential to consider the company's overall financial position and liquidity management strategies before drawing definitive conclusions.

Analyzing the trends in Kyndryl's cash ratio can provide insights into its liquidity management and financial health, helping stakeholders assess the company's ability to meet its short-term obligations. Further analysis of other liquidity ratios and financial metrics would provide a more comprehensive understanding of Kyndryl's financial performance.