Kyndryl Holdings Inc (KD)
Solvency ratios
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.27 | 0.28 | 0.27 | 0.26 | 0.25 | 0.26 | 0.24 | 0.23 | 0.02 |
| Debt-to-capital ratio | 0.74 | 0.72 | 0.75 | 0.71 | 0.69 | 0.62 | 0.65 | 0.59 | 0.52 | 0.05 |
| Debt-to-equity ratio | 2.86 | 2.52 | 2.96 | 2.42 | 2.20 | 1.64 | 1.82 | 1.42 | 1.08 | 0.05 |
| Financial leverage ratio | 10.43 | 9.23 | 10.47 | 8.86 | 8.40 | 6.47 | 7.05 | 5.81 | 4.78 | 2.22 |
Kyndryl Holdings Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
The Debt-to-assets ratio has been relatively stable around the 0.25 to 0.28 range over the past few quarters, indicating that approximately 25-28% of the company's assets are funded by debt. This suggests a moderate level of asset coverage by debt.
The Debt-to-capital ratio has shown a slight increasing trend, indicating that debt represents around 52-74% of the company's capital structure. This suggests that a significant portion of Kyndryl's capital is financed by debt.
The Debt-to-equity ratio has shown some fluctuations but generally remains above 1. This indicates that the company relies heavily on debt financing, with debt representing around 108-296% of equity. Higher ratios imply higher financial risk due to increased reliance on debt.
The Financial leverage ratio has shown an increasing trend over the quarters, reaching 10.43 in the latest period. This ratio indicates that the company has been using debt to finance a significant portion of its assets, with financial leverage ranging from 5.81 to 10.43. Higher financial leverage ratios indicate higher financial risk.
Overall, Kyndryl Holdings Inc's solvency ratios suggest that the company has been increasingly reliant on debt financing to support its operations and growth, which could expose it to higher financial risk in the long term. Investors and creditors may closely monitor these ratios to assess the company's ability to manage its debt levels and meet its financial obligations.
Coverage ratios
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | |
|---|---|---|---|---|---|---|---|
| Interest coverage | -0.40 | -2.77 | -4.54 | -6.25 | -7.95 | -14.27 | -20.80 |
Kyndryl Holdings Inc's interest coverage ratio has been declining over the past few quarters, indicating a deteriorating ability to cover its interest expenses with its operating profits. The negative values for interest coverage indicate that the company's earnings before interest and taxes (EBIT) are insufficient to cover its interest payments. This raises concerns about the company's financial health and its ability to meet its debt obligations. The consistent downward trend in the interest coverage ratio suggests a potential liquidity issue and highlights the need for Kyndryl Holdings Inc to closely monitor and improve its operational performance to enhance its ability to service its debt in the future.