Kyndryl Holdings Inc (KD)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-112,000	-467,000	-640,000	-781,000	-891,000	-1,180,000	-1,568,000
Total assets	US$ in thousands	10,590,000	10,969,000	10,602,000	10,986,000	11,464,000	11,851,000	11,629,000	12,304,000	13,213,000	12,063,000
Operating ROA		-1.06%	-4.26%	-6.04%	-7.11%	-7.77%	-9.96%	-13.48%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-112,000K ÷ $10,590,000K
= -1.06%

Based on the provided data, Kyndryl Holdings Inc's operating return on assets (operating ROA) has been fluctuating over the past few quarters. The operating ROA was at its lowest in the most recent quarter ending March 31, 2024, at -1.06%. This indicates that the company generated a negative return from its operating activities relative to its total assets during that period.

The negative trend in operating ROA is evident, with figures ranging from -1.06% to -13.48% over the last ten quarters. This suggests that Kyndryl Holdings Inc may be facing challenges in generating profits from its core operations relative to the assets employed in the business.

The downward trend in operating ROA could be concerning as it implies inefficiencies in utilizing assets to generate profits. It may indicate issues such as declining operational performance, increased operating expenses, or ineffective asset management strategies within the company.

Investors and stakeholders may view the declining trend in operating ROA as a red flag, signaling the need for Kyndryl Holdings Inc to assess and improve its operational efficiency to enhance profitability and overall financial performance.