Kyndryl Holdings Inc (KD)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 15.39% | 20.08% | 19.76% | 18.75% | 17.84% | 16.95% | 16.32% | 15.71% | 14.84% | 14.48% | 13.34% | 12.10% | 11.33% | 10.30% | 10.70% | 11.20% | 11.18% | 11.47% |
| Operating profit margin | 1.91% | 2.87% | 2.24% | 1.87% | 1.25% | -0.98% | -1.48% | -2.30% | -2.89% | -2.25% | -4.79% | -6.47% | -7.52% | -8.88% | -9.69% | -8.01% | -7.81% | -7.99% |
| Pretax margin | 2.89% | 2.08% | 0.71% | 0.03% | -1.05% | -2.75% | -3.83% | -4.45% | -4.99% | -4.37% | -7.71% | -8.93% | -9.33% | -10.31% | -10.02% | -8.33% | -8.15% | -8.34% |
| Net profit margin | 1.67% | 0.91% | -0.58% | -1.21% | -2.12% | -6.27% | -6.69% | -7.47% | -8.06% | -5.03% | -8.59% | -10.70% | -11.21% | -12.43% | -12.07% | -9.55% | -9.45% | -9.62% |
Based on the provided data, Kyndryl Holdings Inc's profitability ratios have shown mixed trends over the quarters.
1. Gross Profit Margin: Kyndryl's gross profit margin has shown an increasing trend from 11.47% in December 2020 to 20.08% in December 2024, with a slight drop to 15.39% in March 2025. This indicates the company has been able to effectively manage its production costs and generate more profit from its core operations.
2. Operating Profit Margin: The operating profit margin has been negative from December 2020 to December 2023, indicating that Kyndryl was not profitable in its operations during this period. However, the margin turned positive from March 2024 onwards, reaching 1.91% in March 2025. This suggests that the company's operational efficiency and cost controls have improved.
3. Pretax Margin: Similarly, the pretax margin was consistently negative until December 2023, where it turned positive and continued to increase to 2.89% in March 2025. This indicates that Kyndryl has been able to generate more income before accounting for taxes, showing signs of improved financial performance.
4. Net Profit Margin: Kyndryl's net profit margin has also displayed improvement, with the margin moving from negative values in the past to 1.67% in March 2025. This indicates that the company is now more effective in converting revenue into profit after considering all expenses, including interest and taxes.
Overall, the increasing trends in gross profit margin, operating profit margin, pretax margin, and net profit margin suggest that Kyndryl Holdings Inc has been enhancing its profitability and operational efficiency over the quarters, which is a positive sign for investors and stakeholders.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.84% | 4.37% | 3.30% | 2.86% | 1.90% | -1.47% | -2.35% | -3.55% | -4.29% | -3.27% | -7.19% | -9.40% | -10.25% | -12.54% | -15.29% | -13.97% | -13.62% | -13.77% |
| Return on assets (ROA) | 12.98% | 1.39% | -0.86% | -1.85% | -3.21% | -9.41% | -10.62% | -11.51% | -11.98% | -7.30% | -12.89% | -15.53% | -15.28% | -17.55% | -19.04% | -16.65% | -16.47% | -16.57% |
| Return on total capital | — | 40.40% | 17.46% | 17.57% | 4.63% | -13.46% | -24.58% | -31.45% | -36.04% | -21.12% | -50.67% | -54.63% | -52.66% | -57.94% | -32.97% | -30.94% | -29.47% | -31.68% |
| Return on equity (ROE) | — | 12.61% | -8.36% | -18.88% | -33.50% | -86.80% | -111.15% | -101.94% | -100.59% | -47.22% | -90.85% | -90.31% | -78.49% | -83.87% | -42.30% | -38.22% | -36.97% | -38.11% |
Kyndryl Holdings Inc's profitability ratios have shown a significant improvement over the past few years. The Operating Return on Assets (Operating ROA) has progressed from negative values, indicating operational inefficiency, to a positive value of 14.84% as of March 31, 2025. This suggests that the company has been able to generate profits from its core operations more efficiently over time.
Similarly, the Return on Assets (ROA) has also shown a positive trend, improving from negative values to 12.98% as of March 31, 2025. This indicates that Kyndryl Holdings Inc has been able to generate more profits from its total assets.
The Return on Total Capital has experienced a turnaround, moving from negative values to 40.40% as of December 31, 2024. This signifies that the company has been effective in generating returns from its total capital, reflecting improved capital utilization and profitability.
Lastly, the Return on Equity (ROE) has also shown a positive progression, reaching 12.61% as of December 31, 2024. This indicates that Kyndryl Holdings Inc has been able to enhance shareholder value and generate returns on shareholders' equity effectively.
Overall, the improving trend in profitability ratios suggests that Kyndryl Holdings Inc has been successful in enhancing its operational efficiency, asset utilization, capital management, and shareholder value over the analyzed period.