Kyndryl Holdings Inc (KD)
Quick 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 | 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 | — |
| Receivables | US$ in thousands | 289,000 | 1,374,000 | 1,441,000 | 1,440,000 | 1,599,000 | 1,658,000 | 1,663,000 | 1,490,000 | 1,523,000 | 1,539,000 | 1,578,000 | 1,902,000 | 2,271,000 | 2,279,000 | 1,746,000 | 1,614,000 | 1,614,000 | 1,444,000 |
| 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 |
| Quick ratio | 20.52 | 0.73 | 0.65 | 0.64 | 0.69 | 0.65 | 0.68 | 0.65 | 0.69 | 0.77 | 0.76 | 0.82 | 0.87 | 1.01 | 0.67 | 0.44 | 0.44 | 0.38 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($942,000K
+ $—K
+ $289,000K)
÷ $60,000K
= 20.52
The quick ratio of Kyndryl Holdings Inc, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the years. Starting at a low of 0.38 as of December 31, 2020, the ratio improved gradually, reaching 1.01 by December 31, 2021. This significant increase indicates that the company had more than enough liquid assets to cover its current liabilities at that point.
However, the quick ratio dipped in the subsequent periods, with a noticeable decline to 0.65 by June 30, 2023. This decrease may raise some concerns about the company's short-term liquidity position. It is important to note that a quick ratio of 1 or higher is generally considered healthy, as it suggests that the company can easily cover its short-term liabilities with its quick assets.
The unexpected spike to 20.52 on March 31, 2025, could be due to an anomaly or data error, as such an exceptionally high ratio is not typically seen in normal financial operations. Further investigation would be necessary to understand the cause of this outlier and its implications.
Overall, although the quick ratio of Kyndryl Holdings Inc has shown fluctuations over the years, it is essential to monitor this ratio closely to assess the company's short-term liquidity position and ensure its ability to meet its financial obligations as they come due.
Peer comparison
Mar 31, 2025