Kyndryl Holdings Inc (KD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 9.07 | 9.76 | 10.20 | 10.43 | 9.23 | 10.47 | 8.86 | 8.40 | 6.47 | 7.05 | 5.81 | 5.14 | 4.78 | 2.22 | 2.29 | 2.24 | 2.30 |
Kyndryl Holdings Inc demonstrates a strong solvency position based on its solvency ratios. The Debt-to-assets ratio has consistently been at 0.00 across all reported periods, indicating that the company has no debt relative to its total assets. This implies a low level of financial risk related to asset coverage.
The Debt-to-capital ratio has also maintained a stable 0.00 value up to March 31, 2025. This ratio signifies that Kyndryl's capital structure is not reliant on debt financing, highlighting a conservative financial strategy.
Similarly, the Debt-to-equity ratio has remained at 0.00 throughout the reporting periods, indicating that the company's equity is not leveraged with debt. This signifies a favorable balance between debt and equity in the capital structure.
Regarding the Financial leverage ratio, Kyndryl's leverage has shown variation over the years, starting at 2.30 on December 31, 2020, and peaking at 10.47 on September 30, 2023, before decreasing to 9.07 by December 31, 2024. Although the leverage ratio increased significantly during the period, it then stabilized and decreased, which may indicate more moderate risk exposure.
Overall, Kyndryl Holdings Inc's solvency ratios reflect a financially stable and well-structured organization with a conservative debt policy, low leverage, and a strong capacity to cover its obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Kyndryl Holdings Inc has shown a significant improvement over the quarters provided. The company had negative values for the interest coverage ratio in late 2020 and throughout 2021, indicating that the company's operating income was insufficient to cover its interest expenses during that period.
However, starting from March 2022, the interest coverage ratio began to improve, gradually moving into positive territory by March 2024. This suggests that the company's operating income became more sufficient to cover its interest expenses, indicating a stronger financial position and a reduced risk of default due to interest payments.
By the end of 2024, Kyndryl Holdings Inc's interest coverage ratio reached a healthy level of 4.50, indicating that the company's operating income was more than four times its interest expenses at that point. This improvement in the interest coverage ratio reflects positively on the company's financial stability and ability to meet its debt obligations.