Kyndryl Holdings Inc (KD)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | — | 10,590,000 | 11,464,000 | 13,213,000 | 11,205,000 |
| Total stockholders’ equity | US$ in thousands | — | 1,015,000 | 1,365,000 | 2,765,000 | 4,872,000 |
| Financial leverage ratio | — | 10.43 | 8.40 | 4.78 | 2.30 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $—K ÷ $—K
= —
The financial leverage ratio for Kyndryl Holdings Inc has shown a significant upward trend over the past few years, increasing from 2.30 as of March 31, 2021, to 10.43 as of March 31, 2024. This indicates that the company has been relying more heavily on debt to finance its operations and investments. However, it's worth noting that the ratio for March 31, 2025 is not available.
A higher financial leverage ratio suggests that the company may be taking on more financial risk, as increased debt can lead to higher interest payments and potential solvency issues if not managed effectively. Investors and creditors often view a high leverage ratio with caution, as it may indicate a higher probability of default in times of financial distress.
It's important for Kyndryl Holdings Inc to closely monitor its leverage ratio and ensure that it maintains a healthy balance between debt and equity to support long-term financial stability and growth. This may involve optimizing its capital structure and closely managing its debt levels to mitigate any potential risks associated with high leverage.
Peer comparison
Mar 31, 2025