Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
International Business Machines Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | International Business Machines Corp. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | International Business Machines Corp. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | International Business Machines Corp. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | International Business Machines Corp. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | International Business Machines Corp. debt to assets ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | International Business Machines Corp. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | International Business Machines Corp. financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | International Business Machines Corp. interest coverage ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | International Business Machines Corp. fixed charge coverage ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Equity
International Business Machines Corp., debt to equity 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.04 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | |
| Cadence Design Systems Inc. | 0.53 | 0.19 | 0.27 | 0.13 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.32 | 0.51 | 0.72 | 0.85 | 0.00 | |
| Intuit Inc. | 0.33 | 0.35 | 0.42 | 0.21 | 0.66 | |
| Microsoft Corp. | 0.29 | 0.31 | 0.39 | 0.50 | 0.62 | |
| Oracle Corp. | 9.98 | 84.33 | — | 16.08 | 5.93 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | |
| Palo Alto Networks Inc. | 0.19 | 1.14 | 17.51 | 5.08 | 2.80 | |
| Salesforce Inc. | 0.17 | 0.20 | 0.19 | 0.07 | 0.09 | |
| ServiceNow Inc. | 0.15 | 0.20 | 0.30 | 0.43 | 0.58 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | |
| Workday Inc. | 0.37 | 0.53 | 0.41 | 0.55 | 0.51 | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.54 | 0.64 | 0.71 | 0.83 | 0.94 | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.61 | 0.66 | 0.70 | 0.83 | 0.97 | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | International Business Machines Corp. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Debt to Equity (including Operating Lease Liability)
International Business Machines Corp., debt to equity (including operating lease liability) 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| Total debt | 54,973) | 56,547) | 50,949) | 51,704) | 61,538) | |
| Current operating lease liabilities | 768) | 820) | 874) | 974) | 1,357) | |
| Noncurrent operating lease liabilities | 2,655) | 2,568) | 2,190) | 2,462) | 3,574) | |
| Total debt (including operating lease liability) | 58,396) | 59,935) | 54,013) | 55,140) | 66,469) | |
| Total IBM stockholders’ equity | 27,307) | 22,533) | 21,944) | 18,901) | 20,597) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.14 | 2.66 | 2.46 | 2.92 | 3.23 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.15 | 0.12 | 0.15 | 0.18 | 0.21 | |
| Adobe Inc. | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | |
| Cadence Design Systems Inc. | 0.56 | 0.24 | 0.34 | 0.18 | 0.20 | |
| CrowdStrike Holdings Inc. | 0.34 | 0.54 | 0.76 | 0.89 | 0.00 | |
| Intuit Inc. | 0.36 | 0.39 | 0.46 | 0.25 | 0.71 | |
| Microsoft Corp. | 0.36 | 0.39 | 0.47 | 0.58 | 0.69 | |
| Oracle Corp. | 10.85 | 88.84 | — | 16.61 | 6.10 | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.10 | 0.11 | 0.30 | |
| Palo Alto Networks Inc. | 0.27 | 1.33 | 19.12 | 5.68 | 3.16 | |
| Salesforce Inc. | 0.23 | 0.25 | 0.25 | 0.15 | 0.18 | |
| ServiceNow Inc. | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | |
| Synopsys Inc. | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | |
| Workday Inc. | 0.41 | 0.58 | 0.46 | 0.68 | 0.63 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.62 | 0.73 | 0.80 | 0.93 | 1.05 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.67 | 0.72 | 0.77 | 0.90 | 1.04 | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total IBM stockholders’ equity
= 58,396 ÷ 27,307 = 2.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | International Business Machines Corp. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Debt to Capital
International Business Machines Corp., debt to capital 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| 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) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | |
| Cadence Design Systems Inc. | 0.35 | 0.16 | 0.21 | 0.11 | 0.12 | |
| CrowdStrike Holdings Inc. | 0.24 | 0.34 | 0.42 | 0.46 | 0.00 | |
| Intuit Inc. | 0.25 | 0.26 | 0.30 | 0.17 | 0.40 | |
| Microsoft Corp. | 0.23 | 0.24 | 0.28 | 0.33 | 0.38 | |
| Oracle Corp. | 0.91 | 0.99 | 1.09 | 0.94 | 0.86 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | |
| Palo Alto Networks Inc. | 0.16 | 0.53 | 0.95 | 0.84 | 0.74 | |
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.06 | 0.08 | |
| ServiceNow Inc. | 0.13 | 0.16 | 0.23 | 0.30 | 0.37 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | |
| Workday Inc. | 0.27 | 0.35 | 0.29 | 0.35 | 0.34 | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.35 | 0.39 | 0.41 | 0.45 | 0.49 | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | 0.49 | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | International Business Machines Corp. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Debt to Capital (including Operating Lease Liability)
International Business Machines Corp., debt to capital (including operating lease liability) 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| Total debt | 54,973) | 56,547) | 50,949) | 51,704) | 61,538) | |
| Current operating lease liabilities | 768) | 820) | 874) | 974) | 1,357) | |
| Noncurrent operating lease liabilities | 2,655) | 2,568) | 2,190) | 2,462) | 3,574) | |
| Total debt (including operating lease liability) | 58,396) | 59,935) | 54,013) | 55,140) | 66,469) | |
| Total IBM stockholders’ equity | 27,307) | 22,533) | 21,944) | 18,901) | 20,597) | |
| Total capital (including operating lease liability) | 85,703) | 82,468) | 75,957) | 74,041) | 87,066) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.68 | 0.73 | 0.71 | 0.74 | 0.76 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.13 | 0.11 | 0.13 | 0.15 | 0.17 | |
| Adobe Inc. | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | |
| Cadence Design Systems Inc. | 0.36 | 0.19 | 0.25 | 0.15 | 0.17 | |
| CrowdStrike Holdings Inc. | 0.26 | 0.35 | 0.43 | 0.47 | 0.00 | |
| Intuit Inc. | 0.26 | 0.28 | 0.31 | 0.20 | 0.42 | |
| Microsoft Corp. | 0.27 | 0.28 | 0.32 | 0.37 | 0.41 | |
| Oracle Corp. | 0.92 | 0.99 | 1.08 | 0.94 | 0.86 | |
| Palantir Technologies Inc. | 0.05 | 0.06 | 0.09 | 0.10 | 0.23 | |
| Palo Alto Networks Inc. | 0.21 | 0.57 | 0.95 | 0.85 | 0.76 | |
| Salesforce Inc. | 0.19 | 0.20 | 0.20 | 0.13 | 0.16 | |
| ServiceNow Inc. | 0.19 | 0.23 | 0.31 | 0.37 | 0.43 | |
| Synopsys Inc. | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | |
| Workday Inc. | 0.29 | 0.37 | 0.32 | 0.41 | 0.39 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.38 | 0.42 | 0.45 | 0.48 | 0.51 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.40 | 0.42 | 0.43 | 0.47 | 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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 58,396 ÷ 85,703 = 0.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | International Business Machines Corp. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Debt to Assets
International Business Machines Corp., debt to assets 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| Total debt | 54,973) | 56,547) | 50,949) | 51,704) | 61,538) | |
| Total assets | 137,175) | 135,241) | 127,243) | 132,001) | 155,971) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.40 | 0.42 | 0.40 | 0.39 | 0.39 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | |
| Cadence Design Systems Inc. | 0.28 | 0.11 | 0.15 | 0.08 | 0.09 | |
| CrowdStrike Holdings Inc. | 0.11 | 0.15 | 0.20 | 0.27 | 0.00 | |
| Intuit Inc. | 0.19 | 0.22 | 0.25 | 0.13 | 0.31 | |
| Microsoft Corp. | 0.15 | 0.16 | 0.18 | 0.21 | 0.24 | |
| Oracle Corp. | 0.62 | 0.67 | 0.69 | 0.64 | 0.62 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | |
| Palo Alto Networks Inc. | 0.05 | 0.14 | 0.30 | 0.31 | 0.34 | |
| Salesforce Inc. | 0.10 | 0.12 | 0.12 | 0.04 | 0.06 | |
| ServiceNow Inc. | 0.07 | 0.09 | 0.11 | 0.15 | 0.19 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | |
| Workday Inc. | 0.18 | 0.22 | 0.18 | 0.21 | 0.19 | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | |
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 assets = Total debt ÷ Total assets
= 54,973 ÷ 137,175 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | International Business Machines Corp. debt to assets ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Debt to Assets (including Operating Lease Liability)
International Business Machines Corp., debt to assets (including operating lease liability) 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) | ||||||
| Short-term debt | 5,089) | 6,426) | 4,760) | 6,787) | 7,183) | |
| Long-term debt, excluding current maturities | 49,884) | 50,121) | 46,189) | 44,917) | 54,355) | |
| Total debt | 54,973) | 56,547) | 50,949) | 51,704) | 61,538) | |
| Current operating lease liabilities | 768) | 820) | 874) | 974) | 1,357) | |
| Noncurrent operating lease liabilities | 2,655) | 2,568) | 2,190) | 2,462) | 3,574) | |
| Total debt (including operating lease liability) | 58,396) | 59,935) | 54,013) | 55,140) | 66,469) | |
| Total assets | 137,175) | 135,241) | 127,243) | 132,001) | 155,971) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.43 | 0.44 | 0.42 | 0.42 | 0.43 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.07 | 0.06 | 0.07 | 0.08 | 0.09 | |
| Adobe Inc. | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | |
| Cadence Design Systems Inc. | 0.29 | 0.14 | 0.18 | 0.11 | 0.13 | |
| CrowdStrike Holdings Inc. | 0.12 | 0.16 | 0.21 | 0.29 | 0.00 | |
| Intuit Inc. | 0.20 | 0.24 | 0.27 | 0.16 | 0.33 | |
| Microsoft Corp. | 0.19 | 0.19 | 0.21 | 0.25 | 0.27 | |
| Oracle Corp. | 0.67 | 0.71 | 0.73 | 0.66 | 0.64 | |
| Palantir Technologies Inc. | 0.04 | 0.05 | 0.07 | 0.08 | 0.17 | |
| Palo Alto Networks Inc. | 0.07 | 0.16 | 0.33 | 0.35 | 0.38 | |
| Salesforce Inc. | 0.14 | 0.15 | 0.15 | 0.10 | 0.11 | |
| ServiceNow Inc. | 0.11 | 0.13 | 0.17 | 0.21 | 0.24 | |
| Synopsys Inc. | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | |
| Workday Inc. | 0.20 | 0.24 | 0.20 | 0.26 | 0.23 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.27 | 0.29 | 0.30 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.27 | 0.28 | 0.29 | 0.31 | 0.33 | |
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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 58,396 ÷ 137,175 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | International Business Machines Corp. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Financial Leverage
International Business Machines Corp., financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 1.98 | 1.99 | 2.14 | 2.21 | 2.18 | |
| Adobe Inc. | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | |
| Cadence Design Systems Inc. | 1.92 | 1.67 | 1.87 | 1.60 | 1.58 | |
| CrowdStrike Holdings Inc. | 2.88 | 3.43 | 3.53 | 3.14 | 1.89 | |
| Intuit Inc. | 1.74 | 1.61 | 1.69 | 1.57 | 2.14 | |
| Microsoft Corp. | 1.91 | 2.00 | 2.19 | 2.35 | 2.55 | |
| Oracle Corp. | 16.20 | 125.24 | — | 25.03 | 9.56 | |
| Palantir Technologies Inc. | 1.27 | 1.30 | 1.35 | 1.42 | 1.77 | |
| Palo Alto Networks Inc. | 3.87 | 8.29 | 58.35 | 16.14 | 8.23 | |
| Salesforce Inc. | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 | |
| ServiceNow Inc. | 2.12 | 2.28 | 2.64 | 2.92 | 3.07 | |
| Synopsys Inc. | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | |
| Workday Inc. | 2.04 | 2.41 | 2.31 | 2.66 | 2.74 | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.35 | 2.55 | 2.72 | 2.95 | 3.13 | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.45 | 2.55 | 2.68 | 2.89 | 3.12 | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | International Business Machines Corp. financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Interest Coverage
International Business Machines Corp., interest coverage 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) | ||||||
| Net income attributable to IBM | 6,023) | 7,502) | 1,639) | 5,743) | 5,590) | |
| Add: Net income attributable to noncontrolling interest | 17) | 16) | 20) | 19) | 22) | |
| Less: Income (loss) from discontinued operations, net of tax | 8) | (12) | (143) | 1,031) | 89) | |
| Add: Income tax expense | (218) | 1,176) | (626) | 125) | (864) | |
| Add: Interest expense | 1,712) | 1,607) | 1,216) | 1,155) | 1,288) | |
| Earnings before interest and tax (EBIT) | 7,526) | 10,313) | 2,392) | 6,011) | 5,947) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.40 | 6.42 | 1.97 | 5.20 | 4.62 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 165.48 | 193.31 | 195.34 | 131.46 | 205.84 | |
| Adobe Inc. | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | |
| Cadence Design Systems Inc. | 19.37 | 36.43 | 46.58 | 46.26 | 31.50 | |
| CrowdStrike Holdings Inc. | 5.77 | -5.31 | -5.34 | -55.36 | -315.25 | |
| Intuit Inc. | 15.67 | 13.05 | 32.38 | 89.14 | 158.00 | |
| Microsoft Corp. | 37.72 | 46.38 | 41.58 | 31.31 | 21.47 | |
| Oracle Corp. | 4.39 | 3.65 | 3.84 | 6.28 | 7.13 | |
| Palantir Technologies Inc. | — | 69.33 | -87.97 | -133.20 | -82.39 | |
| Palo Alto Networks Inc. | 120.07 | 21.82 | -6.56 | -1.85 | -1.61 | |
| Salesforce Inc. | 18.49 | 3.20 | 7.93 | 21.49 | 6.43 | |
| ServiceNow Inc. | 76.57 | 43.00 | 15.78 | 9.89 | 5.56 | |
| Synopsys Inc. | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | |
| Workday Inc. | 4.12 | -1.54 | 1.97 | -3.00 | -7.22 | |
| Interest Coverage, Sector | ||||||
| Software & Services | 18.10 | 17.34 | 18.20 | 17.38 | 14.02 | |
| Interest Coverage, Industry | ||||||
| Information Technology | 19.65 | 17.77 | 22.75 | 19.95 | 14.17 | |
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
Interest coverage = EBIT ÷ Interest expense
= 7,526 ÷ 1,712 = 4.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | International Business Machines Corp. interest coverage ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Fixed Charge Coverage
International Business Machines Corp., fixed charge coverage 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) | ||||||
| Net income attributable to IBM | 6,023) | 7,502) | 1,639) | 5,743) | 5,590) | |
| Add: Net income attributable to noncontrolling interest | 17) | 16) | 20) | 19) | 22) | |
| Less: Income (loss) from discontinued operations, net of tax | 8) | (12) | (143) | 1,031) | 89) | |
| Add: Income tax expense | (218) | 1,176) | (626) | 125) | (864) | |
| Add: Interest expense | 1,712) | 1,607) | 1,216) | 1,155) | 1,288) | |
| Earnings before interest and tax (EBIT) | 7,526) | 10,313) | 2,392) | 6,011) | 5,947) | |
| Add: Operating lease cost | 1,018) | 1,013) | 1,050) | 1,126) | 1,581) | |
| Earnings before fixed charges and tax | 8,544) | 11,326) | 3,442) | 7,137) | 7,528) | |
| Interest expense | 1,712) | 1,607) | 1,216) | 1,155) | 1,288) | |
| Operating lease cost | 1,018) | 1,013) | 1,050) | 1,126) | 1,581) | |
| Fixed charges | 2,730) | 2,620) | 2,266) | 2,281) | 2,869) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.13 | 4.32 | 1.52 | 3.13 | 2.62 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 13.46 | 10.98 | 12.25 | 10.41 | 9.66 | |
| Adobe Inc. | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | |
| Cadence Design Systems Inc. | 11.13 | 14.79 | 15.50 | 13.77 | 11.46 | |
| CrowdStrike Holdings Inc. | 3.98 | -3.39 | -3.39 | -6.40 | -12.01 | |
| Intuit Inc. | 11.14 | 9.03 | 14.67 | 25.58 | 27.48 | |
| Microsoft Corp. | 17.61 | 19.44 | 19.50 | 16.90 | 12.44 | |
| Oracle Corp. | 3.53 | 3.12 | 3.22 | 5.17 | 5.68 | |
| Palantir Technologies Inc. | 9.48 | 4.62 | -5.06 | -7.89 | -16.41 | |
| Palo Alto Networks Inc. | 12.78 | 7.20 | -1.18 | -1.09 | -0.52 | |
| Salesforce Inc. | 4.74 | 1.51 | 2.18 | 2.92 | 1.68 | |
| ServiceNow Inc. | 12.36 | 7.59 | 3.87 | 2.95 | 2.29 | |
| Synopsys Inc. | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | |
| Workday Inc. | 2.60 | -0.29 | 1.15 | -0.69 | -2.35 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.99 | 9.50 | 9.45 | 9.23 | 7.44 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 12.46 | 11.37 | 13.48 | 12.23 | 9.05 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,544 ÷ 2,730 = 3.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | International Business Machines Corp. fixed charge coverage ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |