Kyndryl Holdings, Inc. key statistics and ratios

In fiscal 2026, Kyndryl Holdings, Inc. had return on equity of 16.5%, a net margin of 1.3%, debt equal to 552.5% of equity and a current ratio of 0.88. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Kyndryl Holdings, Inc.: financial ratios, annual
Fiscal year	2020Dec 2019	2021Dec 2020	2022Dec 2021	2023Mar 2023	2024Mar 2024	2025Mar 2025	2026Mar 2026	LTMJun 2026
Gross margin	12.8%	11.4%	11.3%	14.8%	17.8%	20.9%	21.8%	21.8%
Net margin	−4.7%	−10.4%	−12.3%	−8.1%	−2.1%	1.7%	1.3%	0.6%
Free-cash-flow margin	−0.3%	−2.1%	−4.7%	−0.5%	−1.2%	2.2%	2.3%	1.0%
Return on equity	−15.7%	−36.9%	−60.3%	−66.5%	−28.6%	22.6%	16.5%	7.8%
Return on assets	—	−17.9%	−18.9%	−11.1%	−3.1%	2.4%	1.7%	0.7%
Asset turnover	—	1.73	1.53	1.38	1.46	1.43	1.31	1.22
Current ratio	—	0.73	1.30	1.02	1.03	1.07	0.88	0.85
Debt to equity	0.0%	5.7%	121.4%	245.3%	333.5%	272.3%	552.5%	603.9%
Effective tax rate	—	—	—	—	—	42.3%	51.9%	65.2%
R&D as % of revenue	0.4%	0.4%	0.3%	0.5%	0.4%	0.3%	0.4%	—
SG&A as % of revenue	14.6%	15.2%	14.9%	17.1%	17.3%	17.2%	17.6%	17.9%
Capital spending as % of revenue	5.9%	5.4%	4.0%	5.1%	4.1%	4.0%	4.0%	4.1%
Free cash flow ÷ net income	—	—	—	—	—	133.7%	171.7%	170.1%
Dividends and buybacks ÷ free cash flow	—	—	—	—	—	27.6%	89.4%	206.8%

US$ thousands unless shown otherwise. Fiscal quarters.

Kyndryl Holdings, Inc.: financial ratios, quarterly
Quarter	2025 Q2Sept 2024	2025 Q3Dec 2024	2025 Q4Mar 2025	2026 Q1Jun 2025	2026 Q2Sept 2025	2026 Q3Dec 2025	2026 Q4Mar 2026	2027 Q1Jun 2026
Gross margin	19.9%	20.4%	21.7%	21.3%	21.5%	21.8%	22.5%	21.4%
Net margin	−1.1%	5.7%	1.8%	1.5%	1.8%	1.5%	0.5%	−1.5%
Free-cash-flow margin	0.4%	4.0%	9.0%	−7.1%	0.5%	5.4%	10.1%	−12.7%
Current ratio	1.03	1.09	1.07	1.05	1.02	0.86	0.88	0.85
Debt to equity	285.0%	276.9%	248.5%	245.4%	246.5%	310.3%	485.1%	532.7%
SG&A as % of revenue	17.1%	17.3%	16.8%	17.3%	17.7%	17.4%	18.0%	18.5%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 6 checks passed · June 30, 2026

What it owns · $12.0bn

Short-term assets $5.1bnLonger-term assets $7.0bn

What it owes, and who funded it · $11.9bn

Short-term liabilities $6.0bnLonger-term liabilities $4.9bnShareholders' equity $1.1bn

Short-term assets cover short-term liabilities $5.1bn of assets due within a year against $6.0bn of liabilities due within a year.
Short-term assets cover long-term liabilities $5.1bn short-term assets against $4.9bn of longer-dated liabilities.
More cash than debt $2.1bn of cash against $5.7bn of debt.
Debt below 40% of shareholders' equity Debt is 533% of equity.
Debt burden no higher than five years ago Debt to equity moved from 108% to 533% over five years.
A year's operating cash flow covers at least 20% of debt $762m of operating cash flow against $5.7bn of debt.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Kyndryl Holdings, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

10 /100

Weak moat

How hard Kyndryl Holdings's competitive advantage looks for rivals to wear away, judged from 6 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 0 / 20

Cash operating profit has been a median 0.3% of total assets over 5 years.
Pricing power 6 / 20

Gross margin has been a median 17.2%, moving by 3.9 percentage points (standard deviation) across 6 years.
Durability 10 / 20

Net margin has been a median -4.3%; its worst year was -10.7%.
Cash conversion 4 / 20

Free cash flow was positive in 2 of 5 years, at a median -0.4% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (25 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Kyndryl Holdings, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Kyndryl Holdings, Inc.