Kyndryl Holdings Inc (KD)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | -46,000 | -422,000 | -704,000 | -1,703,000 |
| Interest expense | US$ in thousands | 100,000 | 122,000 | 94,000 | 64,000 | 63,000 |
| Interest coverage | 0.00 | -0.38 | -4.49 | -11.00 | -27.03 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $100,000K
= 0.00
Based on the interest coverage ratios provided for Kyndryl Holdings Inc, it is evident that the company has been experiencing significant challenges in meeting its interest payment obligations in recent years. The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income.
As of March 31, 2021, the interest coverage ratio was -27.03, indicating that the company's operating income was insufficient to cover its interest payments by a substantial margin. This negative ratio suggests a high level of financial risk and potential difficulties in meeting debt obligations.
Over the subsequent years, although there has been some improvement in the interest coverage ratio, the company continued to struggle with negative ratios. By March 31, 2025, the interest coverage ratio had improved to 0.00, which means that the company's operating income was just enough to cover its interest expenses.
Overall, the trend in Kyndryl Holdings Inc's interest coverage ratios shows a persistent strain on its financial resources to meet interest payments. It implies a heightened financial risk and underscores the importance of closely monitoring the company's ability to generate sufficient income to cover its debt obligations in the future.
Peer comparison
Mar 31, 2025