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Kyndryl Holdings Financial Strength

: 5 (As of Jun. 2022)
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Kyndryl Holdings has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Kyndryl Holdings did not have earnings to cover the interest expense. Kyndryl Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.25. As of today, Kyndryl Holdings's Altman Z-Score is 1.18.


Competitive Comparison

For the Information Technology Services subindustry, Kyndryl Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Kyndryl Holdings's Financial Strength falls into.



Kyndryl Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Kyndryl Holdings's Interest Expense for the months ended in Jun. 2022 was $-20 Mil. Its Operating Income for the months ended in Jun. 2022 was $-87 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,927 Mil.

Kyndryl Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Kyndryl Holdings did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Kyndryl Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(443 + 3927) / 17152
=0.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Kyndryl Holdings has a Z-score of 1.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.18 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Kyndryl Holdings  (NYSE:KD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Kyndryl Holdings has the Financial Strength Rank of 5.


Kyndryl Holdings Financial Strength Related Terms

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


Kyndryl Holdings Business Description

Kyndryl Holdings logo
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.
Executives
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Harris John D director C/O FLEXTRONICS INTERNATIONAL USA, INC. 6201 AMERICA CENTER DRIVE SAN JOSE CA 95002
Sebold Edward officer: General Counsel and Secretary ONE NEW ORCHARD ROAD ARMONK NY 10504
Khurana Vineet officer: Vice President & Controller ONE NEW ORCHARD ROAD ARMONK NY 10504
Hester Stephen A. M. director ONE NEW ORCHARD ROAD ARMONK NY 10504
Keinan Elly officer: Group President ONE NEW ORCHARD ROAD ARMONK NY 10504
Kugel Janina director ONE NEW ORCHARD ROAD ARMONK NY 10504
Machuel Denis director ONE NEW ORCHARD ROAD ARMONK NY 10504
Wyshner David B officer: CFO & Treasurer C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Schroeter Martin J director, officer: Chief Executive Officer IBM CORPORATION ONE NEW ORCHARD ROAD ARMONK NY 10504
Merchant Rahul N director C/O EMULEX CORPORATION 3333 SUSAN STREET COSTA MESA CA 92626
Jackson Shirley A director 110 8TH STREEET TROY NY 12180-3590
Ungerleider Howard I director 2211 H.H. DOW WAY MIDLAND MI 48674
Charbonnier Maryjo officer: Chief Human Resources Officer ONE NEW ORCHARD ROAD ARMONK NY 10504

Kyndryl Holdings Headlines

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