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

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to IBM (as reported)	7,502)	1,639)	5,743)	5,590)	9,431)
Add: Net changes related to available-for-sale securities, net of tax amount	—)	(1)	—)	—)	1)
Net income attributable to IBM (adjusted)	7,502)	1,638)	5,743)	5,590)	9,432)

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International Business Machines Corp., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	12.13%	2.71%	10.01%	7.59%	12.22%
Adjusted net profit margin	12.13%	2.71%	10.01%	7.59%	12.23%
Return on Equity (ROE)
Reported ROE	33.29%	7.47%	30.38%	27.14%	45.25%
Adjusted ROE	33.29%	7.46%	30.38%	27.14%	45.26%
Return on Assets (ROA)
Reported ROA	5.55%	1.29%	4.35%	3.58%	6.20%
Adjusted ROA	5.55%	1.29%	4.35%	3.58%	6.20%

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	International Business Machines Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	International Business Machines Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	7,502)	1,639)	5,743)	5,590)	9,431)
Revenue	61,860)	60,530)	57,350)	73,620)	77,147)
Profitability Ratio
Net profit margin¹	12.13%	2.71%	10.01%	7.59%	12.22%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	7,502)	1,638)	5,743)	5,590)	9,432)
Revenue	61,860)	60,530)	57,350)	73,620)	77,147)
Profitability Ratio
Adjusted net profit margin²	12.13%	2.71%	10.01%	7.59%	12.23%

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to IBM ÷ Revenue
= 100 × 7,502 ÷ 61,860 = 12.13%

² Adjusted net profit margin = 100 × Adjusted net income attributable to IBM ÷ Revenue
= 100 × 7,502 ÷ 61,860 = 12.13%

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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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	7,502)	1,639)	5,743)	5,590)	9,431)
Total IBM stockholders’ equity	22,533)	21,944)	18,901)	20,597)	20,841)
Profitability Ratio
ROE¹	33.29%	7.47%	30.38%	27.14%	45.25%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	7,502)	1,638)	5,743)	5,590)	9,432)
Total IBM stockholders’ equity	22,533)	21,944)	18,901)	20,597)	20,841)
Profitability Ratio
Adjusted ROE²	33.29%	7.46%	30.38%	27.14%	45.26%

2023 Calculations

¹ ROE = 100 × Net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × 7,502 ÷ 22,533 = 33.29%

² Adjusted ROE = 100 × Adjusted net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × 7,502 ÷ 22,533 = 33.29%

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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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IBM	7,502)	1,639)	5,743)	5,590)	9,431)
Total assets	135,241)	127,243)	132,001)	155,971)	152,186)
Profitability Ratio
ROA¹	5.55%	1.29%	4.35%	3.58%	6.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IBM	7,502)	1,638)	5,743)	5,590)	9,432)
Total assets	135,241)	127,243)	132,001)	155,971)	152,186)
Profitability Ratio
Adjusted ROA²	5.55%	1.29%	4.35%	3.58%	6.20%

2023 Calculations

¹ ROA = 100 × Net income attributable to IBM ÷ Total assets
= 100 × 7,502 ÷ 135,241 = 5.55%

² Adjusted ROA = 100 × Adjusted net income attributable to IBM ÷ Total assets
= 100 × 7,502 ÷ 135,241 = 5.55%

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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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

International Business Machines Corp. (NYSE:IBM)

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