Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
International Business Machines Corp., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 | |
| Quick ratio | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
| Cash ratio | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | International Business Machines Corp. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | International Business Machines Corp. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | International Business Machines Corp. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |
Current Ratio
International Business Machines Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | |
| Adobe Inc. | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | |
| Cadence Design Systems Inc. | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | |
| CrowdStrike Holdings Inc. | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | |
| Intuit Inc. | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | |
| Microsoft Corp. | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | |
| Oracle Corp. | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | |
| Palantir Technologies Inc. | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | |
| Palo Alto Networks Inc. | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | |
| Salesforce Inc. | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | |
| ServiceNow Inc. | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | |
| Synopsys Inc. | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | |
| Current Ratio, Sector | ||||||
| Software & Services | — | 1.38 | 1.44 | 1.68 | 1.93 | |
| Current Ratio, Industry | ||||||
| Information Technology | — | 1.41 | 1.37 | 1.55 | 1.71 | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | International Business Machines Corp. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
Quick Ratio
International Business Machines Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 13,947) | 13,068) | 7,886) | 6,650) | 13,212) | |
| Restricted cash | 214) | 21) | 103) | 307) | 463) | |
| Marketable securities | 644) | 373) | 852) | 600) | 600) | |
| Notes and accounts receivable, trade, net of allowances | 6,804) | 7,214) | 6,541) | 6,754) | 7,132) | |
| Short-term financing receivables, held for investment, net of allowances | 6,259) | 6,102) | 6,851) | 7,221) | 10,892) | |
| Short-term financing receivables, held for sale | 900) | 692) | 939) | 793) | —) | |
| Other accounts receivable, net of allowances | 947) | 640) | 817) | 1,002) | 714) | |
| Total quick assets | 29,715) | 28,110) | 23,989) | 23,327) | 33,013) | |
| Current liabilities | 33,142) | 34,122) | 31,505) | 33,619) | 39,869) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | |
| Adobe Inc. | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 | |
| Cadence Design Systems Inc. | 2.53 | 1.02 | 1.02 | 1.47 | 1.60 | |
| CrowdStrike Holdings Inc. | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | |
| Intuit Inc. | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | |
| Microsoft Corp. | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | |
| Oracle Corp. | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | |
| Palantir Technologies Inc. | 5.83 | 5.41 | 4.92 | 4.11 | 3.59 | |
| Palo Alto Networks Inc. | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | |
| Salesforce Inc. | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | |
| ServiceNow Inc. | 1.02 | 1.00 | 1.06 | 1.01 | 1.16 | |
| Synopsys Inc. | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | |
| Quick Ratio, Sector | ||||||
| Software & Services | — | 1.21 | 1.26 | 1.52 | 1.76 | |
| Quick Ratio, Industry | ||||||
| Information Technology | — | 1.12 | 1.09 | 1.30 | 1.47 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 29,715 ÷ 33,142 = 0.90
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | International Business Machines Corp. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
Cash Ratio
International Business Machines Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 13,947) | 13,068) | 7,886) | 6,650) | 13,212) | |
| Restricted cash | 214) | 21) | 103) | 307) | 463) | |
| Marketable securities | 644) | 373) | 852) | 600) | 600) | |
| Total cash assets | 14,805) | 13,462) | 8,841) | 7,557) | 14,275) | |
| Current liabilities | 33,142) | 34,122) | 31,505) | 33,619) | 39,869) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | |
| Adobe Inc. | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | |
| Cadence Design Systems Inc. | 2.03 | 0.72 | 0.66 | 1.13 | 1.17 | |
| CrowdStrike Holdings Inc. | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | |
| Intuit Inc. | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | |
| Microsoft Corp. | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | |
| Oracle Corp. | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | |
| Palantir Technologies Inc. | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | |
| Palo Alto Networks Inc. | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | |
| Salesforce Inc. | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | |
| ServiceNow Inc. | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | |
| Synopsys Inc. | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | |
| Cash Ratio, Sector | ||||||
| Software & Services | — | 0.77 | 0.82 | 1.11 | 1.33 | |
| Cash Ratio, Industry | ||||||
| Information Technology | — | 0.70 | 0.66 | 0.89 | 1.07 | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 14,805 ÷ 33,142 = 0.45
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | International Business Machines Corp. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |