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KD (Kyndryl Holdings) Debt-to-EBITDA : 3.90 (As of Sep. 2024)


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What is Kyndryl Holdings Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kyndryl Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $413 Mil. Kyndryl Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $3,686 Mil. Kyndryl Holdings's annualized EBITDA for the quarter that ended in Sep. 2024 was $1,052 Mil. Kyndryl Holdings's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 3.90.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Kyndryl Holdings's Debt-to-EBITDA or its related term are showing as below:

KD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.96   Med: 5.26   Max: 6.93
Current: 3.32

During the past 6 years, the highest Debt-to-EBITDA Ratio of Kyndryl Holdings was 6.93. The lowest was 0.96. And the median was 5.26.

KD's Debt-to-EBITDA is ranked worse than
77.99% of 1645 companies
in the Software industry
Industry Median: 1.05 vs KD: 3.32

Kyndryl Holdings Debt-to-EBITDA Historical Data

The historical data trend for Kyndryl Holdings's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

Kyndryl Holdings Annual Data
Trend Dec18 Dec19 Dec20 Mar21 Mar23 Mar24
Debt-to-EBITDA
Get a 7-Day Free Trial 0.96 6.93 - 6.88 3.65

Kyndryl Holdings Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Debt-to-EBITDA Get a 7-Day Free Trial 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 4.50 2.79 3.49 3.48 3.90

Competitive Comparison of Kyndryl Holdings's Debt-to-EBITDA

For the Information Technology Services subindustry, Kyndryl Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Kyndryl Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Kyndryl Holdings's Debt-to-EBITDA falls into.



Kyndryl Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kyndryl Holdings's Debt-to-EBITDA for the fiscal year that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(411 + 3734) / 1137
=3.65

Kyndryl Holdings's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(413 + 3686) / 1052
=3.90

* 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 Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2024) EBITDA data.


Kyndryl Holdings  (NYSE:KD) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Kyndryl Holdings Debt-to-EBITDA Related Terms

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


Kyndryl Holdings Business Description

Traded in Other Exchanges
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. The company's reportable segments consist of the following: Principal Markets which represents its operations in operations in Australia / New Zealand, Canada, France, Germany, India, Italy, Spain, Portugal, and the United Kingdom / Ireland, United States, Japan, and Strategic Markets. It derives maximum revenue from the United States.
Executives
Vineet Khurana officer: Vice President & Controller ONE NEW ORCHARD ROAD, ARMONK NY 10504
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
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