Kyndryl Holdings Inc (KD)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 10.43 | 8.40 | 4.78 | 2.30 |
Based on the provided data, Kyndryl Holdings Inc has shown consistent and strong solvency ratios over the years.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently reported as 0.00, indicating that the company has no debt in relation to its assets, capital, and equity. This suggests that Kyndryl Holdings Inc operates with minimal financial leverage and relies more on equity financing rather than debt to fund its operations and investments.
The Financial leverage ratio has shown an increasing trend over the years, starting at 2.30 in 2021 and rising to 10.43 in 2024. This may indicate that the company has been gradually taking on more debt relative to its equity, which could increase financial risk.
However, it is important to note that the data for the Financial leverage ratio in 2025 is not available (indicated as "\u2014"), so it is unclear how the trend may continue in the following years.
Overall, Kyndryl Holdings Inc's strong lack of debt in relation to its assets and equity indicates a solid financial position and a lower risk of insolvency. Monitoring the Financial leverage ratio in the future will be crucial to assess the company's changing debt structure and associated risks.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | -0.38 | -4.49 | -11.00 | -27.03 |
Based on the provided data for Kyndryl Holdings Inc, the interest coverage ratio has been consistently negative in recent years. As of March 31, 2021, the interest coverage ratio was -27.03, indicating a significant inability to cover interest payments with operating income. Over the following years, the ratio improved slightly, but still remained negative at -11.00 in 2022, -4.49 in 2023, and -0.38 in 2024. By March 31, 2025, the interest coverage ratio reached 0.00, suggesting that the company was just able to cover its interest expenses with its operating income.
Overall, the trend in Kyndryl Holdings Inc's interest coverage ratio shows a persistent struggle to generate sufficient earnings to comfortably cover its interest obligations. This situation may raise concerns about the company's ability to service its debt effectively and efficiently. Further analysis of the company's financial performance and debt management strategies would be advisable to assess the sustainability of its financial health.