International Business Machines Corp., balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Short-term debt	6,426)	4,760)	6,787)	7,183)	8,797)
Long-term debt, excluding current maturities	50,121)	46,189)	44,917)	54,355)	54,102)
Total debt (carrying amount)	56,547)	50,949)	51,704)	61,538)	62,899)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	International Business Machines Corp. total debt decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term debt	6,426)
Long-term debt, excluding current maturities	48,284)
Total debt (fair value)	54,710)
Financial Ratio
Debt, fair value to carrying amount ratio	0.97

Post-swap weighted-average interest rate on debt: 3.42%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.00%	48,803)	1,464)
6.10%	7,743)	472)
Total	56,546)	1,936)
3.42%

¹ US$ in millions

² Weighted-average interest rate = 100 × 1,936 ÷ 56,546 = 3.42%

International Business Machines Corp., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of financing	334)	345)	392)	451)	608)
Interest expense	1,606)	1,216)	1,155)	1,288)	1,344)
Interest capitalized	9)	5)	3)	6)	5)
Interest paid and accrued	1,949)	1,566)	1,550)	1,745)	1,957)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	International Business Machines Corp. interest expense increased from 2021 to 2022 and from 2022 to 2023.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	International Business Machines Corp. interest capitalized increased from 2021 to 2022 and from 2022 to 2023.
Interest paid and accrued	Total interest costs incurred during the period and either capitalized or charged against earnings.	International Business Machines Corp. interest paid and accrued increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to IBM	7,502)	1,639)	5,743)	5,590)	9,431)
Add: Net income attributable to noncontrolling interest	16)	20)	19)	22)	25)
Less: Income (loss) from discontinued operations, net of tax	(12)	(143)	1,031)	89)	(4)
Add: Income tax expense	1,176)	(626)	125)	(864)	731)
Add: Interest expense	1,607)	1,216)	1,155)	1,288)	1,344)
Earnings before interest and tax (EBIT)	10,313)	2,392)	6,011)	5,947)	11,535)

Interest paid and accrued	1,949)	1,566)	1,550)	1,745)	1,957)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	6.42	1.97	5.20	4.62	8.58
Adjusted interest coverage ratio (with capitalized interest)²	5.29	1.53	3.88	3.41	5.89

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 10,313 ÷ 1,607 = 6.42

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest paid and accrued
= 10,313 ÷ 1,949 = 5.29

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	International Business Machines Corp. adjusted interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

International Business Machines Corp. (NYSE:IBM)

Analysis of Debt