Kyndryl Holdings Inc (KD)

Return on sales

Kyndryl Holdings Inc's profitability ratios show varying trends over the years. The gross profit margin has steadily increased from 11.41% in March 2021 to 17.84% in March 2024, indicating improvement in the company's ability to generate profits from its core operations. However, there was a significant drop to 0.00% in March 2025, which is a cause for concern and requires further investigation.

The operating profit margin reflects the company's ability to generate profits from its regular business activities. Kyndryl Holdings Inc has shown a negative trend, with margins improving from -8.80% in March 2021 to 0.56% in March 2024. However, the margin for March 2025 has returned to 0.00%, indicating that the company may be facing challenges in controlling operating expenses.

The pretax margin, which indicates how efficiently the company is managing its expenses in relation to its revenue, has shown improvement over the years. The margin increased from -9.13% in March 2021 to 2.89% in March 2025. This improvement suggests that the company has been able to better control its costs and increase profitability before taxes.

Lastly, the net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, has fluctuated over the years. The margin improved from -10.40% in March 2021 to -2.12% in March 2024 before turning positive at 1.67% in March 2025. This indicates that Kyndryl Holdings Inc has been able to enhance its net profitability, although challenges were evident in the earlier years.

Overall, while there have been improvements in certain profitability ratios, such as gross profit margin and pretax margin, Kyndryl Holdings Inc needs to address the fluctuations in operating profit margin and focus on sustaining positive net profit margins for continued financial stability.

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Return on investment

Based on the provided data, Kyndryl Holdings Inc's profitability ratios show a mixed performance over the past five years:

1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a gradual improvement from -15.20% in March 2021 to 0.85% in March 2024. This indicates that the company's operating income generated per dollar of assets has increased over the period.

2. Return on Assets (ROA):
- The ROA has also improved, moving from -17.96% in March 2021 to -3.21% in March 2024. This ratio reflects the company's overall efficiency in using its assets to generate profit.

3. Return on Total Capital:
- The Return on Total Capital has followed a similar trend, decreasing from -34.95% in March 2021 to -4.53% in March 2024. This ratio measures the effectiveness of the company in generating returns from both debt and equity investments.

4. Return on Equity (ROE):
- The ROE experienced significant fluctuations, plummeting from -41.30% in March 2021 to -100.66% in March 2023, before improving slightly to -33.50% in March 2024. This ratio reflects the company's ability to generate profits from shareholders' equity.

Overall, Kyndryl Holdings Inc has shown some improvement in its profitability ratios over the years, with a notable positive trend in Operating ROA, ROA, and ROE from 2021 to 2024. However, the company still faces challenges in achieving sustainable profitability, as evidenced by negative returns in some periods. Further analysis of the company's financial performance and industry comparison would provide more insights into its overall profitability position.