Kyndryl(Kd) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for KD compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2021', KD's return on equity was -83.3%, measuring profitability for shareholders. Industry average for EDP Services in '2021' stood at 11.7%.
• In '2021', KD's return on equity was -83.3%, measuring profitability for shareholders. The figure remained stable compared to '2021'. Industry average for EDP Services in '2021' stood at 11.7%. Industry average remained unchanged from prior year.
• In '2023', KD's return on equity was -100.7%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for EDP Services in '2023' stood at -31.6%. Industry average declined by 43.3% from previous year.
• In '2024', KD's return on equity was -28.6%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at -34.2%. Industry average declined by 2.5% from previous year.
• In '2025', KD's return on equity was 22.6%, measuring profitability for shareholders. The increase since '2024' reflects strengthening financial performance. Industry average for EDP Services in '2025' stood at 0.7%. Industry average increased by 34.9% compared to previous year.
Overall, KD's return on equity has been volatile but showed an upward trend over the past 5 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.