Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

$24.99

Return on Capital (ROC)

Microsoft Excel

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Return on Invested Capital (ROIC)

International Business Machines Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. International Business Machines Corp. ROIC deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Decomposition of ROIC

International Business Machines Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 = × ×
Dec 31, 2022 = × ×
Dec 31, 2021 = × ×
Dec 31, 2020 = × ×
Dec 31, 2019 = × ×

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »


Operating Profit Margin (OPM)

International Business Machines Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Revenue
Add: Increase (decrease) in deferred income
Adjusted revenue
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. International Business Machines Corp. OPM deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Turnover of Capital (TO)

International Business Machines Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue
Add: Increase (decrease) in deferred income
Adjusted revenue
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Invested capital. See details »

2 2023 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. International Business Machines Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Effective Cash Tax Rate (CTR)

International Business Machines Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. International Business Machines Corp. CTR increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.