International Business Machines Corp., adjustment to net income attributable to IBM

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to IBM (as reported)	6,023)	7,502)	1,639)	5,743)	5,590)
Add: Net changes related to available-for-sale securities, net of tax amount	1)	—)	(1)	—)	—)
Net income attributable to IBM (adjusted)	6,024)	7,502)	1,638)	5,743)	5,590)

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International Business Machines Corp., adjusted profitability ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	9.60%	12.13%	2.71%	10.01%	7.59%
Adjusted net profit margin	9.60%	12.13%	2.71%	10.01%	7.59%
Return on Equity (ROE)
Reported ROE	22.06%	33.29%	7.47%	30.38%	27.14%
Adjusted ROE	22.06%	33.29%	7.46%	30.38%	27.14%
Return on Assets (ROA)
Reported ROA	4.39%	5.55%	1.29%	4.35%	3.58%
Adjusted ROA	4.39%	5.55%	1.29%	4.35%	3.58%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	International Business Machines Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	International Business Machines Corp. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	International Business Machines Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	6,023)	7,502)	1,639)	5,743)	5,590)
Revenue	62,753)	61,860)	60,530)	57,350)	73,620)
Profitability Ratio
Net profit margin¹	9.60%	12.13%	2.71%	10.01%	7.59%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	6,024)	7,502)	1,638)	5,743)	5,590)
Revenue	62,753)	61,860)	60,530)	57,350)	73,620)
Profitability Ratio
Adjusted net profit margin²	9.60%	12.13%	2.71%	10.01%	7.59%

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to IBM ÷ Revenue
= 100 × 6,023 ÷ 62,753 = 9.60%

² Adjusted net profit margin = 100 × Adjusted net income attributable to IBM ÷ Revenue
= 100 × 6,024 ÷ 62,753 = 9.60%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	International Business Machines Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	6,023)	7,502)	1,639)	5,743)	5,590)
Total IBM stockholders’ equity	27,307)	22,533)	21,944)	18,901)	20,597)
Profitability Ratio
ROE¹	22.06%	33.29%	7.47%	30.38%	27.14%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	6,024)	7,502)	1,638)	5,743)	5,590)
Total IBM stockholders’ equity	27,307)	22,533)	21,944)	18,901)	20,597)
Profitability Ratio
Adjusted ROE²	22.06%	33.29%	7.46%	30.38%	27.14%

2024 Calculations

¹ ROE = 100 × Net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × 6,023 ÷ 27,307 = 22.06%

² Adjusted ROE = 100 × Adjusted net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × 6,024 ÷ 27,307 = 22.06%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	International Business Machines Corp. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	6,023)	7,502)	1,639)	5,743)	5,590)
Total assets	137,175)	135,241)	127,243)	132,001)	155,971)
Profitability Ratio
ROA¹	4.39%	5.55%	1.29%	4.35%	3.58%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	6,024)	7,502)	1,638)	5,743)	5,590)
Total assets	137,175)	135,241)	127,243)	132,001)	155,971)
Profitability Ratio
Adjusted ROA²	4.39%	5.55%	1.29%	4.35%	3.58%

2024 Calculations

¹ ROA = 100 × Net income attributable to IBM ÷ Total assets
= 100 × 6,023 ÷ 137,175 = 4.39%

² Adjusted ROA = 100 × Adjusted net income attributable to IBM ÷ Total assets
= 100 × 6,024 ÷ 137,175 = 4.39%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	International Business Machines Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

International Business Machines Corp. (NYSE:IBM)

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