The historical rank and industry rank for Kyndryl Holdings's Gross Margin % or its related term are showing as below:
KD'
s Gross Margin % Range Over the Past 10 Years
Min: 11.29 Med: 11.74 Max: 16.95
Current: 16.95
During the past 5 years, the highestGross Margin % of Kyndryl Holdings was 16.95%. The lowest was 11.29%. And the median was 11.74%.
KD's Gross Margin % is ranked worse than 86.07% of 2628
companies
in the Software industry
Industry Median: 41.71
vs KD: 16.95
Kyndryl Holdings had a gross margin of 19.11% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kyndryl Holdings was 0.00% per year.
Kyndryl Holdings Gross Margin % Historical Data
The historical data trend for Kyndryl Holdings's Gross Margin % 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.
Competitive Comparison of Kyndryl Holdings's Gross Margin %
For the Information Technology Services subindustry, Kyndryl Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Kyndryl Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kyndryl Holdings's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kyndryl Holdings had a gross margin of 19.11% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kyndryl Holdings Gross Margin % Related Terms
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Kyndryl Holdings (Kyndryl Holdings) Business Description
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.
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