Analysis of Reportable Segments
International Business Machines Corp. operates in 4 segments: Software; Consulting; Infrastructure; and Financing.
Segment Profit Margin
International Business Machines Corp., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 32.06% | 29.98% | 29.68% | 19.56% | 14.57% |
| Consulting | 9.93% | 10.20% | 9.33% | 8.12% | 6.36% |
| Infrastructure | 17.48% | 19.38% | 17.47% | 14.27% | 11.38% |
| Financing | 48.81% | 50.34% | 52.71% | 56.98% | 46.05% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software | Software segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Consulting | Consulting segment profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. | |
| Infrastructure | Infrastructure segment profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. | |
| Financing | Financing segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Software
International Business Machines Corp.; Software; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 8,684) | 7,499) | 7,012) | 4,722) | 3,341) |
| Revenue | 27,085) | 25,011) | 23,629) | 24,141) | 22,927) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 32.06% | 29.98% | 29.68% | 19.56% | 14.57% |
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
Segment profit margin = 100 × Segment profit ÷ Revenue
= 100 × 8,684 ÷ 27,085 = 32.06%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software | Software segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Consulting
International Business Machines Corp.; Consulting; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 2,054) | 2,130) | 1,871) | 1,449) | 1,034) |
| Revenue | 20,692) | 20,884) | 20,058) | 17,844) | 16,257) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 9.93% | 10.20% | 9.33% | 8.12% | 6.36% |
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).
1 2024 Calculation
Segment profit margin = 100 × Segment profit ÷ Revenue
= 100 × 2,054 ÷ 20,692 = 9.93%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Consulting | Consulting segment profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment Profit Margin: Infrastructure
International Business Machines Corp.; Infrastructure; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 2,450) | 2,828) | 2,671) | 2,025) | 1,654) |
| Revenue | 14,020) | 14,593) | 15,288) | 14,188) | 14,533) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 17.48% | 19.38% | 17.47% | 14.27% | 11.38% |
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
Segment profit margin = 100 × Segment profit ÷ Revenue
= 100 × 2,450 ÷ 14,020 = 17.48%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Infrastructure | Infrastructure segment profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Segment Profit Margin: Financing
International Business Machines Corp.; Financing; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 348) | 373) | 340) | 441) | 449) |
| Revenue | 713) | 741) | 645) | 774) | 975) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 48.81% | 50.34% | 52.71% | 56.98% | 46.05% |
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
Segment profit margin = 100 × Segment profit ÷ Revenue
= 100 × 348 ÷ 713 = 48.81%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Financing | Financing segment profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Return on Assets (Segment ROA)
International Business Machines Corp., ROA by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 14.30% | 12.54% | 12.56% | 7.96% | 5.71% |
| Consulting | 13.85% | 14.12% | 13.12% | 12.16% | 9.80% |
| Infrastructure | 20.15% | 23.58% | 21.82% | 17.21% | 13.36% |
| Financing | 2.47% | 2.59% | 2.16% | 2.61% | 1.80% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Software | Software segment ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Consulting | Consulting segment ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. | |
| Infrastructure | Infrastructure segment ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. | |
| Financing | Financing segment ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment ROA: Software
International Business Machines Corp.; Software; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 8,684) | 7,499) | 7,012) | 4,722) | 3,341) |
| Assets | 60,707) | 59,811) | 55,822) | 59,336) | 58,558) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 14.30% | 12.54% | 12.56% | 7.96% | 5.71% |
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
Segment ROA = 100 × Segment profit ÷ Assets
= 100 × 8,684 ÷ 60,707 = 14.30%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Software | Software segment ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Segment ROA: Consulting
International Business Machines Corp.; Consulting; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 2,054) | 2,130) | 1,871) | 1,449) | 1,034) |
| Assets | 14,826) | 15,089) | 14,261) | 11,914) | 10,548) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 13.85% | 14.12% | 13.12% | 12.16% | 9.80% |
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
Segment ROA = 100 × Segment profit ÷ Assets
= 100 × 2,054 ÷ 14,826 = 13.85%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Consulting | Consulting segment ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment ROA: Infrastructure
International Business Machines Corp.; Infrastructure; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 2,450) | 2,828) | 2,671) | 2,025) | 1,654) |
| Assets | 12,161) | 11,991) | 12,243) | 11,766) | 12,378) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 20.15% | 23.58% | 21.82% | 17.21% | 13.36% |
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).
1 2024 Calculation
Segment ROA = 100 × Segment profit ÷ Assets
= 100 × 2,450 ÷ 12,161 = 20.15%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Infrastructure | Infrastructure segment ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Segment ROA: Financing
International Business Machines Corp.; Financing; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit | 348) | 373) | 340) | 441) | 449) |
| Assets | 14,075) | 14,409) | 15,757) | 16,880) | 24,974) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 2.47% | 2.59% | 2.16% | 2.61% | 1.80% |
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
Segment ROA = 100 × Segment profit ÷ Assets
= 100 × 348 ÷ 14,075 = 2.47%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Financing | Financing segment ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment Asset Turnover
International Business Machines Corp., asset turnover by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 0.45 | 0.42 | 0.42 | 0.41 | 0.39 |
| Consulting | 1.40 | 1.38 | 1.41 | 1.50 | 1.54 |
| Infrastructure | 1.15 | 1.22 | 1.25 | 1.21 | 1.17 |
| Financing | 0.05 | 0.05 | 0.04 | 0.05 | 0.04 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Software | Software segment asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Consulting | Consulting segment asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. | |
| Infrastructure | Infrastructure segment asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. | |
| Financing | Financing segment asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment Asset Turnover: Software
International Business Machines Corp.; Software; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 27,085) | 25,011) | 23,629) | 24,141) | 22,927) |
| Assets | 60,707) | 59,811) | 55,822) | 59,336) | 58,558) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.45 | 0.42 | 0.42 | 0.41 | 0.39 |
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
Segment asset turnover = Revenue ÷ Assets
= 27,085 ÷ 60,707 = 0.45
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Software | Software segment asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Segment Asset Turnover: Consulting
International Business Machines Corp.; Consulting; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 20,692) | 20,884) | 20,058) | 17,844) | 16,257) |
| Assets | 14,826) | 15,089) | 14,261) | 11,914) | 10,548) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.40 | 1.38 | 1.41 | 1.50 | 1.54 |
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
Segment asset turnover = Revenue ÷ Assets
= 20,692 ÷ 14,826 = 1.40
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Consulting | Consulting segment asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Segment Asset Turnover: Infrastructure
International Business Machines Corp.; Infrastructure; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 14,020) | 14,593) | 15,288) | 14,188) | 14,533) |
| Assets | 12,161) | 11,991) | 12,243) | 11,766) | 12,378) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.15 | 1.22 | 1.25 | 1.21 | 1.17 |
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
Segment asset turnover = Revenue ÷ Assets
= 14,020 ÷ 12,161 = 1.15
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Infrastructure | Infrastructure segment asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Asset Turnover: Financing
International Business Machines Corp.; Financing; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 713) | 741) | 645) | 774) | 975) |
| Assets | 14,075) | 14,409) | 15,757) | 16,880) | 24,974) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.05 | 0.05 | 0.04 | 0.05 | 0.04 |
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
Segment asset turnover = Revenue ÷ Assets
= 713 ÷ 14,075 = 0.05
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Financing | Financing segment asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Segment Capital Expenditures to Depreciation
International Business Machines Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 0.68 | 0.72 | 0.85 | 0.47 | 0.44 |
| Consulting | 0.14 | 0.19 | 0.26 | 0.22 | 0.13 |
| Infrastructure | 0.62 | 0.82 | 0.68 | 0.57 | 0.77 |
| Financing | 1.22 | 1.88 | 1.93 | 0.67 | 0.34 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Software | Software segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Consulting | Consulting segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. | |
| Infrastructure | Infrastructure segment capital expenditures to depreciation ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. | |
| Financing | Financing segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Software
International Business Machines Corp.; Software; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 338) | 369) | 463) | 565) | 548) |
| Depreciation/amortization of non-acquired intangibles | 495) | 510) | 547) | 1,204) | 1,237) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.68 | 0.72 | 0.85 | 0.47 | 0.44 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of non-acquired intangibles
= 338 ÷ 495 = 0.68
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Software | Software segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Consulting
International Business Machines Corp.; Consulting; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 14) | 21) | 29) | 55) | 26) |
| Depreciation/amortization of non-acquired intangibles | 100) | 109) | 112) | 250) | 207) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.14 | 0.19 | 0.26 | 0.22 | 0.13 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of non-acquired intangibles
= 14 ÷ 100 = 0.14
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Consulting | Consulting segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Infrastructure
International Business Machines Corp.; Infrastructure; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 684) | 836) | 853) | 792) | 1,093) |
| Depreciation/amortization of non-acquired intangibles | 1,103) | 1,018) | 1,250) | 1,399) | 1,419) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.62 | 0.82 | 0.68 | 0.57 | 0.77 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of non-acquired intangibles
= 684 ÷ 1,103 = 0.62
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Infrastructure | Infrastructure segment capital expenditures to depreciation ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Segment Capital Expenditures to Depreciation: Financing
International Business Machines Corp.; Financing; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 11) | 15) | 27) | 33) | 41) |
| Depreciation/amortization of non-acquired intangibles | 9) | 8) | 14) | 49) | 120) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.22 | 1.88 | 1.93 | 0.67 | 0.34 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of non-acquired intangibles
= 11 ÷ 9 = 1.22
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Financing | Financing segment capital expenditures to depreciation ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Revenue
International Business Machines Corp., revenue by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 27,085) | 25,011) | 23,629) | 24,141) | 22,927) |
| Consulting | 20,692) | 20,884) | 20,058) | 17,844) | 16,257) |
| Infrastructure | 14,020) | 14,593) | 15,288) | 14,188) | 14,533) |
| Financing | 713) | 741) | 645) | 774) | 975) |
| Total segments | 62,510) | 61,229) | 59,620) | 56,947) | 54,692) |
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).
Segment profit
International Business Machines Corp., segment profit by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 8,684) | 7,499) | 7,012) | 4,722) | 3,341) |
| Consulting | 2,054) | 2,130) | 1,871) | 1,449) | 1,034) |
| Infrastructure | 2,450) | 2,828) | 2,671) | 2,025) | 1,654) |
| Financing | 348) | 373) | 340) | 441) | 449) |
| Total segments | 13,536) | 12,830) | 11,894) | 8,637) | 6,478) |
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).
Assets
International Business Machines Corp., assets by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 60,707) | 59,811) | 55,822) | 59,336) | 58,558) |
| Consulting | 14,826) | 15,089) | 14,261) | 11,914) | 10,548) |
| Infrastructure | 12,161) | 11,991) | 12,243) | 11,766) | 12,378) |
| Financing | 14,075) | 14,409) | 15,757) | 16,880) | 24,974) |
| Total segments | 101,769) | 101,300) | 98,083) | 99,896) | 106,458) |
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).
Depreciation/amortization of non-acquired intangibles
International Business Machines Corp., depreciation/amortization of non-acquired intangibles by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 495) | 510) | 547) | 1,204) | 1,237) |
| Consulting | 100) | 109) | 112) | 250) | 207) |
| Infrastructure | 1,103) | 1,018) | 1,250) | 1,399) | 1,419) |
| Financing | 9) | 8) | 14) | 49) | 120) |
| Total segments | 1,707) | 1,645) | 1,923) | 2,902) | 2,983) |
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).
Capital expenditures/investments in intangibles
International Business Machines Corp., capital expenditures/investments in intangibles by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Software | 338) | 369) | 463) | 565) | 548) |
| Consulting | 14) | 21) | 29) | 55) | 26) |
| Infrastructure | 684) | 836) | 853) | 792) | 1,093) |
| Financing | 11) | 15) | 27) | 33) | 41) |
| Total segments | 1,047) | 1,241) | 1,372) | 1,445) | 1,708) |
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).