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: 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).
| 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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| 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) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| 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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| 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) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | International Business Machines Corp. financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
International Business Machines Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.51 | 2.32 | 2.74 | 2.99 | 3.02 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | |
| Autodesk Inc. | 1.99 | 3.09 | 1.70 | — | — | |
| Cadence Design Systems Inc. | 0.19 | 0.27 | 0.13 | 0.14 | 0.16 | |
| CrowdStrike Holdings Inc. | 0.51 | 0.72 | 0.85 | 0.00 | — | |
| Intuit Inc. | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | |
| Microsoft Corp. | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | |
| Oracle Corp. | 84.33 | — | 16.08 | 5.93 | 2.58 | |
| Palo Alto Networks Inc. | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | |
| Salesforce Inc. | 0.20 | 0.19 | 0.07 | 0.09 | 0.22 | |
| ServiceNow Inc. | 0.20 | 0.30 | 0.43 | 0.58 | 0.33 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.65 | 0.72 | 0.84 | 0.96 | 1.06 | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.62 | 0.67 | 0.76 | 0.87 | 0.87 | |
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 2023 Calculation
Debt to equity = Total debt ÷ Total IBM stockholders’ equity
= 56,547 ÷ 22,533 = 2.51
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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
International Business Machines Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Current operating lease liabilities | 820) | 874) | 974) | 1,357) | 1,380) | |
| Noncurrent operating lease liabilities | 2,568) | 2,190) | 2,462) | 3,574) | 3,879) | |
| Total debt (including operating lease liability) | 59,935) | 54,013) | 55,140) | 66,469) | 68,158) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.66 | 2.46 | 2.92 | 3.23 | 3.27 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | |
| Adobe Inc. | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | |
| Autodesk Inc. | 2.33 | 3.60 | 2.18 | — | — | |
| Cadence Design Systems Inc. | 0.24 | 0.34 | 0.18 | 0.20 | 0.22 | |
| CrowdStrike Holdings Inc. | 0.54 | 0.76 | 0.89 | 0.00 | — | |
| Intuit Inc. | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | |
| Microsoft Corp. | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | |
| Oracle Corp. | 88.84 | — | 16.61 | 6.10 | 2.58 | |
| Palo Alto Networks Inc. | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | |
| Salesforce Inc. | 0.25 | 0.25 | 0.15 | 0.18 | 0.22 | |
| ServiceNow Inc. | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | |
| Synopsys Inc. | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.74 | 0.82 | 0.94 | 1.08 | 1.13 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.68 | 0.73 | 0.83 | 0.94 | 0.90 | |
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 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total IBM stockholders’ equity
= 59,935 ÷ 22,533 = 2.66
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) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital
International Business Machines Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Total capital | 79,080) | 72,893) | 70,605) | 82,135) | 83,740) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.72 | 0.70 | 0.73 | 0.75 | 0.75 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | |
| Autodesk Inc. | 0.67 | 0.76 | 0.63 | 1.07 | 1.11 | |
| Cadence Design Systems Inc. | 0.16 | 0.21 | 0.11 | 0.12 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.34 | 0.42 | 0.46 | 0.00 | — | |
| Intuit Inc. | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | |
| Oracle Corp. | 0.99 | 1.09 | 0.94 | 0.86 | 0.72 | |
| Palo Alto Networks Inc. | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | |
| Salesforce Inc. | 0.16 | 0.16 | 0.06 | 0.08 | 0.18 | |
| ServiceNow Inc. | 0.16 | 0.23 | 0.30 | 0.37 | 0.25 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.39 | 0.42 | 0.46 | 0.49 | 0.51 | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.46 | |
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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 56,547 ÷ 79,080 = 0.72
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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
International Business Machines Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Current operating lease liabilities | 820) | 874) | 974) | 1,357) | 1,380) | |
| Noncurrent operating lease liabilities | 2,568) | 2,190) | 2,462) | 3,574) | 3,879) | |
| Total debt (including operating lease liability) | 59,935) | 54,013) | 55,140) | 66,469) | 68,158) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Total capital (including operating lease liability) | 82,468) | 75,957) | 74,041) | 87,066) | 88,999) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.73 | 0.71 | 0.74 | 0.76 | 0.77 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | |
| Adobe Inc. | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | |
| Autodesk Inc. | 0.70 | 0.78 | 0.69 | 1.06 | 1.11 | |
| Cadence Design Systems Inc. | 0.19 | 0.25 | 0.15 | 0.17 | 0.18 | |
| CrowdStrike Holdings Inc. | 0.35 | 0.43 | 0.47 | 0.00 | — | |
| Intuit Inc. | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | |
| Microsoft Corp. | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | |
| Oracle Corp. | 0.99 | 1.08 | 0.94 | 0.86 | 0.72 | |
| Palo Alto Networks Inc. | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | |
| Salesforce Inc. | 0.20 | 0.20 | 0.13 | 0.16 | 0.18 | |
| ServiceNow Inc. | 0.23 | 0.31 | 0.37 | 0.43 | 0.35 | |
| Synopsys Inc. | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.43 | 0.45 | 0.49 | 0.52 | 0.53 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.41 | 0.42 | 0.45 | 0.49 | 0.47 | |
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 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 59,935 ÷ 82,468 = 0.73
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) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Assets
International Business Machines Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Total assets | 135,241) | 127,243) | 132,001) | 155,971) | 152,186) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.42 | 0.40 | 0.39 | 0.39 | 0.41 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | |
| Autodesk Inc. | 0.24 | 0.31 | 0.22 | 0.34 | 0.44 | |
| Cadence Design Systems Inc. | 0.11 | 0.15 | 0.08 | 0.09 | 0.10 | |
| CrowdStrike Holdings Inc. | 0.15 | 0.20 | 0.27 | 0.00 | — | |
| Intuit Inc. | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | |
| Microsoft Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | |
| Oracle Corp. | 0.67 | 0.69 | 0.64 | 0.62 | 0.52 | |
| Palo Alto Networks Inc. | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | |
| Salesforce Inc. | 0.12 | 0.12 | 0.04 | 0.06 | 0.11 | |
| ServiceNow Inc. | 0.09 | 0.11 | 0.15 | 0.19 | 0.12 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.25 | 0.26 | 0.28 | 0.30 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.30 | |
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 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 56,547 ÷ 135,241 = 0.42
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 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
International Business Machines Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 6,426) | 4,760) | 6,787) | 7,183) | 8,797) | |
| Long-term debt, excluding current maturities | 50,121) | 46,189) | 44,917) | 54,355) | 54,102) | |
| Total debt | 56,547) | 50,949) | 51,704) | 61,538) | 62,899) | |
| Current operating lease liabilities | 820) | 874) | 974) | 1,357) | 1,380) | |
| Noncurrent operating lease liabilities | 2,568) | 2,190) | 2,462) | 3,574) | 3,879) | |
| Total debt (including operating lease liability) | 59,935) | 54,013) | 55,140) | 66,469) | 68,158) | |
| Total assets | 135,241) | 127,243) | 132,001) | 155,971) | 152,186) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.42 | 0.42 | 0.43 | 0.45 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | |
| Adobe Inc. | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | |
| Autodesk Inc. | 0.28 | 0.36 | 0.29 | 0.41 | 0.44 | |
| Cadence Design Systems Inc. | 0.14 | 0.18 | 0.11 | 0.13 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.16 | 0.21 | 0.29 | 0.00 | — | |
| Intuit Inc. | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | |
| Microsoft Corp. | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | |
| Oracle Corp. | 0.71 | 0.73 | 0.66 | 0.64 | 0.52 | |
| Palo Alto Networks Inc. | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | |
| Salesforce Inc. | 0.15 | 0.15 | 0.10 | 0.11 | 0.11 | |
| ServiceNow Inc. | 0.13 | 0.17 | 0.21 | 0.24 | 0.19 | |
| Synopsys Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.31 | |
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 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 59,935 ÷ 135,241 = 0.44
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 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
International Business Machines Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 135,241) | 127,243) | 132,001) | 155,971) | 152,186) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 6.00 | 5.80 | 6.98 | 7.57 | 7.30 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | |
| Adobe Inc. | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | |
| Autodesk Inc. | 8.24 | 10.14 | 7.54 | — | — | |
| Cadence Design Systems Inc. | 1.67 | 1.87 | 1.60 | 1.58 | 1.60 | |
| CrowdStrike Holdings Inc. | 3.43 | 3.53 | 3.14 | 1.89 | — | |
| Intuit Inc. | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | |
| Microsoft Corp. | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | |
| Oracle Corp. | 125.24 | — | 25.03 | 9.56 | 4.99 | |
| Palo Alto Networks Inc. | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | |
| Salesforce Inc. | 1.69 | 1.64 | 1.60 | 1.63 | 1.97 | |
| ServiceNow Inc. | 2.28 | 2.64 | 2.92 | 3.07 | 2.83 | |
| Synopsys Inc. | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.58 | 2.76 | 2.98 | 3.18 | 3.33 | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.44 | 2.56 | 2.71 | 2.90 | 2.86 | |
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 2023 Calculation
Financial leverage = Total assets ÷ Total IBM stockholders’ equity
= 135,241 ÷ 22,533 = 6.00
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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Interest Coverage
International Business Machines Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to IBM | 7,502) | 1,639) | 5,743) | 5,590) | 9,431) | |
| Add: Net income attributable to noncontrolling interest | 16) | 20) | 19) | 22) | 25) | |
| Less: Income (loss) from discontinued operations, net of tax | (12) | (143) | 1,031) | 89) | (4) | |
| Add: Income tax expense | 1,176) | (626) | 125) | (864) | 731) | |
| Add: Interest expense | 1,607) | 1,216) | 1,155) | 1,288) | 1,344) | |
| Earnings before interest and tax (EBIT) | 10,313) | 2,392) | 6,011) | 5,947) | 11,535) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 6.42 | 1.97 | 5.20 | 4.62 | 8.58 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | |
| Adobe Inc. | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | |
| Autodesk Inc. | 14.32 | 9.69 | 11.70 | 6.46 | 0.18 | |
| Cadence Design Systems Inc. | 36.43 | 46.58 | 46.26 | 31.50 | 26.44 | |
| CrowdStrike Holdings Inc. | -5.31 | -5.34 | -55.36 | -315.25 | — | |
| Intuit Inc. | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | |
| Microsoft Corp. | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | |
| Oracle Corp. | 3.65 | 3.84 | 6.28 | 7.13 | 6.97 | |
| Palo Alto Networks Inc. | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | |
| Salesforce Inc. | 3.30 | 8.09 | 24.28 | 7.42 | 8.80 | |
| ServiceNow Inc. | 43.00 | 15.78 | 9.89 | 5.56 | 3.02 | |
| Synopsys Inc. | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | |
| Interest Coverage, Sector | ||||||
| Software & Services | 17.56 | 18.23 | 17.67 | 14.41 | 13.00 | |
| Interest Coverage, Industry | ||||||
| Information Technology | 18.86 | 24.65 | 23.05 | 16.83 | 15.85 | |
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 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,313 ÷ 1,607 = 6.42
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
International Business Machines Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to IBM | 7,502) | 1,639) | 5,743) | 5,590) | 9,431) | |
| Add: Net income attributable to noncontrolling interest | 16) | 20) | 19) | 22) | 25) | |
| Less: Income (loss) from discontinued operations, net of tax | (12) | (143) | 1,031) | 89) | (4) | |
| Add: Income tax expense | 1,176) | (626) | 125) | (864) | 731) | |
| Add: Interest expense | 1,607) | 1,216) | 1,155) | 1,288) | 1,344) | |
| Earnings before interest and tax (EBIT) | 10,313) | 2,392) | 6,011) | 5,947) | 11,535) | |
| Add: Operating lease cost | 1,013) | 1,050) | 1,126) | 1,581) | 1,645) | |
| Earnings before fixed charges and tax | 11,326) | 3,442) | 7,137) | 7,528) | 13,180) | |
| Interest expense | 1,607) | 1,216) | 1,155) | 1,288) | 1,344) | |
| Operating lease cost | 1,013) | 1,050) | 1,126) | 1,581) | 1,645) | |
| Fixed charges | 2,620) | 2,266) | 2,281) | 2,869) | 2,989) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.32 | 1.52 | 3.13 | 2.62 | 4.41 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | |
| Adobe Inc. | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | |
| Autodesk Inc. | 7.06 | 4.46 | 4.58 | 3.09 | 0.62 | |
| Cadence Design Systems Inc. | 14.79 | 15.50 | 13.77 | 11.46 | 9.95 | |
| CrowdStrike Holdings Inc. | -3.39 | -3.39 | -6.40 | -12.01 | — | |
| Intuit Inc. | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | |
| Microsoft Corp. | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | |
| Oracle Corp. | 3.12 | 3.22 | 5.17 | 5.68 | 5.50 | |
| Palo Alto Networks Inc. | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | |
| Salesforce Inc. | 1.52 | 2.18 | 2.94 | 1.69 | 3.00 | |
| ServiceNow Inc. | 7.59 | 3.87 | 2.95 | 2.29 | 1.69 | |
| Synopsys Inc. | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.63 | 9.53 | 9.38 | 7.64 | 7.52 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.88 | 14.17 | 13.49 | 10.22 | 10.45 | |
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 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,326 ÷ 2,620 = 4.32
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |