Kyndryl Holdings Inc (KD)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 252,000 | -340,000 | -1,374,000 | -2,305,000 | -2,012,000 |
| Total stockholders’ equity | US$ in thousands | — | 1,015,000 | 1,365,000 | 2,765,000 | 4,872,000 |
| ROE | — | -33.50% | -100.66% | -83.36% | -41.30% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $252,000K ÷ $—K
= —
The return on equity (ROE) for Kyndryl Holdings Inc has shown a declining trend over the past few years. As of March 31, 2021, the ROE was at -41.30%, indicating that the company's net income was insufficient to generate a positive return for its shareholders' equity. This negative trend continued in the subsequent years, with the ROE dropping to -83.36% as of March 31, 2022, and further deteriorating to -100.66% by March 31, 2023.
The significant decline in ROE suggests that Kyndryl Holdings Inc has been facing challenges in effectively utilizing its equity to generate profits. It indicates that the company's profitability is under pressure, and it may be struggling to create value for its shareholders.
However, the ROE rebounded slightly to -33.50% as of March 31, 2024, although it still remains negative. The absence of data for March 31, 2025, implies a lack of current information on the company's financial performance.
In conclusion, Kyndryl Holdings Inc's ROE has been consistently negative, reflecting potential inefficiencies in its operations and profitability challenges. It is crucial for the company to address these issues and focus on improving its return on equity to enhance shareholder value in the future.
Peer comparison
Mar 31, 2025