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Kyndryl Holdings (Kyndryl Holdings) ROE %

: -4.36% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kyndryl Holdings's annualized net income for the quarter that ended in Dec. 2023 was $-48 Mil. Kyndryl Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,101 Mil. Therefore, Kyndryl Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was -4.36%.

The historical rank and industry rank for Kyndryl Holdings's ROE % or its related term are showing as below:

KD' s ROE % Range Over the Past 10 Years
Min: -77.72   Med: -48.82   Max: -16
Current: -77.72

During the past 5 years, Kyndryl Holdings's highest ROE % was -16.00%. The lowest was -77.72%. And the median was -48.82%.

KD's ROE % is ranked worse than
89.51% of 2641 companies
in the Software industry
Industry Median: 3.17 vs KD: -77.72

Kyndryl Holdings ROE % Historical Data

The historical data trend for Kyndryl Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kyndryl Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Mar23
ROE %
- -16.00 -37.29 -60.34 -66.54

Kyndryl Holdings Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -24.35 -184.42 -43.30 -50.42 -4.36

Competitive Comparison

For the Information Technology Services subindustry, Kyndryl Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kyndryl Holdings ROE % Distribution

For the Software industry and Technology sector, Kyndryl Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Kyndryl Holdings's ROE % falls into.



Kyndryl Holdings ROE % Calculation

Kyndryl Holdings's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=-1374/( (2765+1365)/ 2 )
=-1374/2065
=-66.54 %

Kyndryl Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-48/( (1013+1189)/ 2 )
=-48/1101
=-4.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Kyndryl Holdings  (NYSE:KD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-48/1101
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-48 / 15744)*(15744 / 10785.5)*(10785.5 / 1101)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.3 %*1.4597*9.7961
=ROA %*Equity Multiplier
=-0.44 %*9.7961
=-4.36 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-48/1101
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-48 / 212) * (212 / 188) * (188 / 15744) * (15744 / 10785.5) * (10785.5 / 1101)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -0.2264 * 1.1277 * 1.19 % * 1.4597 * 9.7961
=-4.36 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Kyndryl Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Kyndryl Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kyndryl Holdings (Kyndryl Holdings) Business Description

Address
One Vanderbilt Avenue, 15th Floor, New York, NY, USA, 10017
Kyndryl Holdings Inc is a technology services and infrastructure services provider company. It provides advisory, implementation, and managed services across a range of technology domains to help customers manage and modernize enterprise IT environments in support of their business and transformation objectives.
Executives
Elly Keinan officer: Group President ONE NEW ORCHARD ROAD, ARMONK NY 10504
Martin J Schroeter director, officer: Chief Executive Officer IBM CORPORATION, ONE NEW ORCHARD ROAD, ARMONK NY 10504
David B Wyshner officer: CFO & Treasurer C/O XPO LOGISTICS, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Denis Machuel director ONE NEW ORCHARD ROAD, ARMONK NY 10504
Hester Stephen A. M. director ONE NEW ORCHARD ROAD, ARMONK NY 10504
Howard I Ungerleider director 2211 H.H. DOW WAY, MIDLAND MI 48674
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
International Business Machines Corp director, 10 percent owner 1 NEW ORCHARD RD, ARMONK NY 10504
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
John D Harris director C/O FLEXTRONICS INTERNATIONAL USA, INC., 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Edward Sebold officer: General Counsel and Secretary ONE NEW ORCHARD ROAD, ARMONK NY 10504
Vineet Khurana officer: Vice President & Controller ONE NEW ORCHARD ROAD, ARMONK NY 10504
Janina Kugel director ONE NEW ORCHARD ROAD, ARMONK NY 10504
Rahul N Merchant director C/O EMULEX CORPORATION, 3333 SUSAN STREET, COSTA MESA CA 92626
Shirley A Jackson director 110 8TH STREEET, TROY NY 12180-3590