Kyndryl Holdings Inc (KD)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,976,000 | 1,987,000 | 2,121,000 | 1,900,000 | 1,907,000 | 1,921,000 | 2,060,000 | 2,576,000 | 2,652,000 | 1,746,000 |
| 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 |
| Quick ratio | 0.77 | 0.71 | 0.79 | 0.74 | 0.77 | 0.85 | 0.86 | 0.96 | 1.09 | 0.68 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,553,000K
+ $—K
+ $1,976,000K)
÷ $4,589,000K
= 0.77
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (current assets excluding inventory) by current liabilities.
Looking at the quick ratio of Kyndryl Holdings Inc over the past ten quarters, we observe fluctuations in the ratio. The quick ratio ranges from 0.68 to 1.09 during this period. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Specifically, in the most recent quarter ended March 31, 2024, the quick ratio stood at 0.77. This implies that for every dollar of current liabilities, Kyndryl Holdings Inc has $0.77 of quick assets readily available to cover those obligations. The slight decrease from the previous quarter's ratio of 0.71 could indicate a potential strain on the company's short-term liquidity.
It is essential to further analyze the components influencing the quick ratio, such as cash, marketable securities, and receivables, to gain a deeper understanding of Kyndryl's liquidity position. Additionally, monitoring trends in the quick ratio over time can provide valuable insights into the company's financial health and ability to manage its short-term obligations efficiently.
Peer comparison
Mar 31, 2024