Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

International Business Machines Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Activity Ratio
Total Asset Turnover
Reported 0.46 0.46 0.48 0.43 0.47
Adjusted 0.49 0.49 0.49 0.46 0.51
Liquidity Ratio
Current Ratio
Reported 1.04 0.96 0.92 0.88 0.98
Adjusted 1.81 1.62 1.53 1.43 1.48
Solvency Ratios
Debt to Equity
Reported 2.01 2.51 2.32 2.74 2.99
Adjusted 1.49 1.73 1.58 1.70 1.90
Debt to Capital
Reported 0.67 0.72 0.70 0.73 0.75
Adjusted 0.60 0.63 0.61 0.63 0.66
Financial Leverage
Reported 5.02 6.00 5.80 6.98 7.57
Adjusted 3.34 3.72 3.54 3.86 4.21
Profitability Ratios
Net Profit Margin
Reported 9.60% 12.13% 2.71% 10.01% 7.59%
Adjusted 11.83% 9.06% 8.11% 13.95% 3.58%
Return on Equity (ROE)
Reported 22.06% 33.29% 7.47% 30.38% 27.14%
Adjusted 19.17% 16.55% 14.19% 24.88% 7.67%
Return on Assets (ROA)
Reported 4.39% 5.55% 1.29% 4.35% 3.58%
Adjusted 5.75% 4.45% 4.01% 6.45% 1.82%

Based on: 10-K (reporting date: 2024-12-31), 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. International Business Machines Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. International Business Machines Corp. adjusted current ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. International Business Machines Corp. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. International Business Machines Corp. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 International Business Machines Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. International Business Machines Corp. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. International Business Machines Corp. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. International Business Machines Corp. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

International Business Machines Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Revenue 62,753 61,860 60,530 57,350 73,620
Total assets 137,175 135,241 127,243 132,001 155,971
Activity Ratio
Total asset turnover1 0.46 0.46 0.48 0.43 0.47
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 63,298 63,313 59,966 57,707 74,877
Adjusted total assets3 130,342 128,886 121,309 124,873 147,109
Activity Ratio
Adjusted total asset turnover4 0.49 0.49 0.49 0.46 0.51

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= 62,753 ÷ 137,175 = 0.46

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 63,298 ÷ 130,342 = 0.49

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. International Business Machines Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Current assets 34,482 32,908 29,118 29,539 39,165
Current liabilities 33,142 34,122 31,505 33,619 39,869
Liquidity Ratio
Current ratio1 1.04 0.96 0.92 0.88 0.98
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 34,627 33,209 29,440 29,781 39,544
Adjusted current liabilities3 19,098 20,496 19,257 20,861 26,749
Liquidity Ratio
Adjusted current ratio4 1.81 1.62 1.53 1.43 1.48

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 34,482 ÷ 33,142 = 1.04

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 34,627 ÷ 19,098 = 1.81

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. International Business Machines Corp. adjusted current ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 54,973 56,547 50,949 51,704 61,538
Total IBM stockholders’ equity 27,307 22,533 21,944 18,901 20,597
Solvency Ratio
Debt to equity1 2.01 2.51 2.32 2.74 2.99
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 58,396 59,935 54,013 55,140 66,469
Adjusted total equity3 39,068 34,637 34,261 32,346 34,979
Solvency Ratio
Adjusted debt to equity4 1.49 1.73 1.58 1.70 1.90

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to equity = Total debt ÷ Total IBM stockholders’ equity
= 54,973 ÷ 27,307 = 2.01

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 58,396 ÷ 39,068 = 1.49

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. International Business Machines Corp. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 54,973 56,547 50,949 51,704 61,538
Total capital 82,280 79,080 72,893 70,605 82,135
Solvency Ratio
Debt to capital1 0.67 0.72 0.70 0.73 0.75
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 58,396 59,935 54,013 55,140 66,469
Adjusted total capital3 97,464 94,572 88,274 87,486 101,448
Solvency Ratio
Adjusted debt to capital4 0.60 0.63 0.61 0.63 0.66

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 54,973 ÷ 82,280 = 0.67

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 58,396 ÷ 97,464 = 0.60

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. International Business Machines Corp. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total assets 137,175 135,241 127,243 132,001 155,971
Total IBM stockholders’ equity 27,307 22,533 21,944 18,901 20,597
Solvency Ratio
Financial leverage1 5.02 6.00 5.80 6.98 7.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 130,342 128,886 121,309 124,873 147,109
Adjusted total equity3 39,068 34,637 34,261 32,346 34,979
Solvency Ratio
Adjusted financial leverage4 3.34 3.72 3.54 3.86 4.21

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Financial leverage = Total assets ÷ Total IBM stockholders’ equity
= 137,175 ÷ 27,307 = 5.02

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 130,342 ÷ 39,068 = 3.34

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 International Business Machines Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 7,491 5,734 4,861 8,049 2,683
Adjusted revenue3 63,298 63,313 59,966 57,707 74,877
Profitability Ratio
Adjusted net profit margin4 11.83% 9.06% 8.11% 13.95% 3.58%

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Net profit margin = 100 × Net income attributable to IBM ÷ Revenue
= 100 × 6,023 ÷ 62,753 = 9.60%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 7,491 ÷ 63,298 = 11.83%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 7,491 5,734 4,861 8,049 2,683
Adjusted total equity3 39,068 34,637 34,261 32,346 34,979
Profitability Ratio
Adjusted ROE4 19.17% 16.55% 14.19% 24.88% 7.67%

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
ROE = 100 × Net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × 6,023 ÷ 27,307 = 22.06%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 7,491 ÷ 39,068 = 19.17%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. International Business Machines Corp. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 7,491 5,734 4,861 8,049 2,683
Adjusted total assets3 130,342 128,886 121,309 124,873 147,109
Profitability Ratio
Adjusted ROA4 5.75% 4.45% 4.01% 6.45% 1.82%

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
ROA = 100 × Net income attributable to IBM ÷ Total assets
= 100 × 6,023 ÷ 137,175 = 4.39%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 7,491 ÷ 130,342 = 5.75%

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