Kyndryl Holdings Inc (KD)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,590,000 | 10,969,000 | 10,602,000 | 10,986,000 | 11,464,000 | 11,851,000 | 11,629,000 | 12,304,000 | 13,213,000 | 12,063,000 |
| 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 |
| Financial leverage ratio | 10.43 | 9.23 | 10.47 | 8.86 | 8.40 | 6.47 | 7.05 | 5.81 | 4.78 | 2.22 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,590,000K ÷ $1,015,000K
= 10.43
Kyndryl Holdings Inc's financial leverage ratio has exhibited fluctuation over the past few quarters, ranging from 2.22 to 10.47. The ratio measures the proportion of the company's debt in relation to its equity, indicating the level of financial risk and leverage. A higher financial leverage ratio suggests that the company is relying more on debt to finance its assets, which can amplify returns but also increase financial risk.
In the recent period, the financial leverage ratio has been trending upwards, reaching its peak at 10.47 in September 2023 before slightly decreasing to 10.43 in March 2024. This indicates a significant increase in debt relative to equity during these periods, potentially resulting from strategic financing decisions or business expansions.
It is crucial for investors and stakeholders to closely monitor Kyndryl's financial leverage ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively. The upward trend in the ratio highlights the importance of thorough financial analysis and risk assessment to understand the company's capital structure and financial health comprehensively.
Peer comparison
Mar 31, 2024