Kyndryl Holdings Inc (KD)
Interest coverage
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 450,000 | 442,000 | 186,000 | 175,000 | 47,000 | -160,000 | -249,000 | -390,000 | -492,000 | -387,000 | -836,000 | -1,156,000 | -1,378,000 | -1,602,000 | -1,790,000 | -1,492,000 | -1,453,000 | -1,543,500 |
| Interest expense (ttm) | US$ in thousands | 100,000 | 107,000 | 114,000 | 120,000 | 121,000 | 119,000 | 115,000 | 103,000 | 94,000 | 87,000 | 78,000 | 76,000 | 71,000 | 64,000 | 62,000 | 61,000 | 62,000 | 63,000 |
| Interest coverage | 4.50 | 4.13 | 1.63 | 1.46 | 0.39 | -1.34 | -2.17 | -3.79 | -5.23 | -4.45 | -10.72 | -15.21 | -19.41 | -25.03 | -28.87 | -24.46 | -23.44 | -24.50 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $450,000K ÷ $100,000K
= 4.50
Kyndryl Holdings Inc's interest coverage ratio has shown a significant improvement over the period from December 31, 2020, to March 31, 2025. The interest coverage ratio started at a very low level of around -24.50 in December 2020, indicating that the company was not generating enough operating income to cover its interest expenses.
However, there has been a consistent improvement in the interest coverage ratio over time. By March 31, 2025, the interest coverage ratio has reached a positive value of 4.50, indicating that the company's operating income is now more than sufficient to cover its interest obligations. This positive trend in the interest coverage ratio reflects an improvement in the company's financial health and its ability to meet its debt servicing requirements.
Overall, the improving trend in Kyndryl Holdings Inc's interest coverage ratio suggests that the company is in a better position to manage its debt obligations and indicates a positive outlook for its financial performance moving forward.
Peer comparison
Mar 31, 2025