Kyndryl Holdings Inc (KD)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,900,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 280,000 |
| Total stockholders’ equity | US$ in thousands | 1,015,000 | 1,189,000 | 1,013,000 | 1,240,000 | 1,365,000 | 1,832,000 | 1,650,000 | 2,117,000 | 2,765,000 | 5,430,000 |
| Debt-to-capital ratio | 0.74 | 0.72 | 0.75 | 0.71 | 0.69 | 0.62 | 0.65 | 0.59 | 0.52 | 0.05 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,900,000K ÷ ($2,900,000K + $1,015,000K)
= 0.74
The debt-to-capital ratio of Kyndryl Holdings Inc has fluctuated over the past few quarters, ranging from 0.05 to 0.75. This ratio represents the proportion of debt in the company's capital structure.
In the latest period, as of March 31, 2024, the debt-to-capital ratio stands at 0.74, indicating that debt accounts for approximately 74% of the company's total capital. This suggests that Kyndryl has a relatively high level of debt compared to its equity.
The trend over the past few quarters shows an increase in the debt-to-capital ratio, implying that Kyndryl has been relying more on debt to finance its operations or expansion. It is essential for investors and stakeholders to monitor this ratio closely as an increasing ratio may indicate higher financial risk and leverage for the company.
Overall, the debt-to-capital ratio analysis reveals an increasing trend in Kyndryl's debt levels relative to its capital structure, raising potential concerns regarding the company's financial leverage and ability to cover its debt obligations.
Peer comparison
Mar 31, 2024