Kyndryl Holdings Inc (KD)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 450,000 442,000 186,000 175,000 47,000 -160,000 -249,000 -390,000 -492,000 -387,000 -836,000 -1,156,000 -1,378,000 -1,602,000 -1,790,000 -1,492,000 -1,453,000 -1,543,500
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,094,000 1,065,000 996,000 1,015,000 1,189,000 1,013,000 1,240,000 1,365,000 1,832,000 1,650,000 2,116,000 2,617,000 2,765,000 5,430,000 4,822,000 4,931,000 4,872,000
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%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $450,000K ÷ ($—K + $—K)
= —

Kyndryl Holdings Inc's return on total capital has shown a fluctuating trend over the period from December 31, 2020, to March 31, 2025. Initially, the company reported negative returns on total capital, ranging from -31.68% to -57.94% between December 2020 and December 2021. However, there was a significant improvement in the performance in the following quarters, with the return on total capital gradually increasing to 40.40% as of December 31, 2024. This positive trend indicates a favorable shift in the company's ability to generate returns on the total capital employed in its operations. The sharp increase from negative returns to positive returns demonstrates a possible strategic change or operational improvement within the organization, leading to enhanced efficiency and profitability. Additionally, the return on total capital reaching 40.40% as of December 31, 2024, suggests a significant improvement in the company's ability to generate profits relative to the total capital invested.