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, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 24.98% | 24.61% | 19.56% | 14.57% | 22.43% |
| Consulting | 9.60% | 8.78% | 8.12% | 6.36% | 7.93% |
| Infrastructure | 16.59% | 14.80% | 14.27% | 11.38% | 15.73% |
| Financing | 50.47% | 52.71% | 56.98% | 46.05% | 53.66% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software | Software segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Consulting | Consulting segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Infrastructure | Infrastructure segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Financing | Financing segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Software
International Business Machines Corp.; Software; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 6,571) | 6,162) | 4,722) | 3,341) | 5,025) |
| Revenue | 26,308) | 25,037) | 24,141) | 22,927) | 22,408) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 24.98% | 24.61% | 19.56% | 14.57% | 22.43% |
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
Segment profit margin = 100 × Pre-tax income from continuing operations ÷ Revenue
= 100 × 6,571 ÷ 26,308 = 24.98%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software | Software segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Consulting
International Business Machines Corp.; Consulting; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 1,918) | 1,677) | 1,449) | 1,034) | 1,344) |
| Revenue | 19,985) | 19,107) | 17,844) | 16,257) | 16,939) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 9.60% | 8.78% | 8.12% | 6.36% | 7.93% |
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
Segment profit margin = 100 × Pre-tax income from continuing operations ÷ Revenue
= 100 × 1,918 ÷ 19,985 = 9.60%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Consulting | Consulting segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Infrastructure
International Business Machines Corp.; Infrastructure; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 2,421) | 2,262) | 2,025) | 1,654) | 2,481) |
| Revenue | 14,593) | 15,288) | 14,188) | 14,533) | 15,774) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 16.59% | 14.80% | 14.27% | 11.38% | 15.73% |
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
Segment profit margin = 100 × Pre-tax income from continuing operations ÷ Revenue
= 100 × 2,421 ÷ 14,593 = 16.59%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Infrastructure | Infrastructure segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Financing
International Business Machines Corp.; Financing; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 374) | 340) | 441) | 449) | 652) |
| Revenue | 741) | 645) | 774) | 975) | 1,215) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 50.47% | 52.71% | 56.98% | 46.05% | 53.66% |
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
Segment profit margin = 100 × Pre-tax income from continuing operations ÷ Revenue
= 100 × 374 ÷ 741 = 50.47%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Financing | Financing segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Return on Assets (Segment ROA)
International Business Machines Corp., ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 10.75% | 10.78% | 7.96% | 5.71% | 8.63% |
| Consulting | 13.37% | 12.44% | 12.16% | 9.80% | 12.90% |
| Infrastructure | 20.19% | 18.48% | 17.21% | 13.36% | 20.67% |
| Financing | 2.60% | 2.16% | 2.61% | 1.80% | 2.21% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Software | Software segment ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Consulting | Consulting segment ROA improved from 2021 to 2022 and from 2022 to 2023. | |
| Infrastructure | Infrastructure segment ROA improved from 2021 to 2022 and from 2022 to 2023. | |
| Financing | Financing segment ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Segment ROA: Software
International Business Machines Corp.; Software; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 6,571) | 6,162) | 4,722) | 3,341) | 5,025) |
| Assets | 61,141) | 57,186) | 59,336) | 58,558) | 58,230) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 10.75% | 10.78% | 7.96% | 5.71% | 8.63% |
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
Segment ROA = 100 × Pre-tax income from continuing operations ÷ Assets
= 100 × 6,571 ÷ 61,141 = 10.75%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Software | Software segment ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment ROA: Consulting
International Business Machines Corp.; Consulting; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 1,918) | 1,677) | 1,449) | 1,034) | 1,344) |
| Assets | 14,342) | 13,481) | 11,914) | 10,548) | 10,421) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 13.37% | 12.44% | 12.16% | 9.80% | 12.90% |
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
Segment ROA = 100 × Pre-tax income from continuing operations ÷ Assets
= 100 × 1,918 ÷ 14,342 = 13.37%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Consulting | Consulting segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Infrastructure
International Business Machines Corp.; Infrastructure; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 2,421) | 2,262) | 2,025) | 1,654) | 2,481) |
| Assets | 11,991) | 12,243) | 11,766) | 12,378) | 12,002) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 20.19% | 18.48% | 17.21% | 13.36% | 20.67% |
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
Segment ROA = 100 × Pre-tax income from continuing operations ÷ Assets
= 100 × 2,421 ÷ 11,991 = 20.19%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Infrastructure | Infrastructure segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Financing
International Business Machines Corp.; Financing; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax income from continuing operations | 374) | 340) | 441) | 449) | 652) |
| Assets | 14,409) | 15,757) | 16,880) | 24,974) | 29,460) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 2.60% | 2.16% | 2.61% | 1.80% | 2.21% |
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
Segment ROA = 100 × Pre-tax income from continuing operations ÷ Assets
= 100 × 374 ÷ 14,409 = 2.60%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Financing | Financing segment ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Segment Asset Turnover
International Business Machines Corp., asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 0.43 | 0.44 | 0.41 | 0.39 | 0.38 |
| Consulting | 1.39 | 1.42 | 1.50 | 1.54 | 1.63 |
| Infrastructure | 1.22 | 1.25 | 1.21 | 1.17 | 1.31 |
| Financing | 0.05 | 0.04 | 0.05 | 0.04 | 0.04 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Software | Software segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Consulting | Consulting segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Infrastructure | Infrastructure segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. | |
| Financing | Financing segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Asset Turnover: Software
International Business Machines Corp.; Software; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 26,308) | 25,037) | 24,141) | 22,927) | 22,408) |
| Assets | 61,141) | 57,186) | 59,336) | 58,558) | 58,230) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.43 | 0.44 | 0.41 | 0.39 | 0.38 |
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
Segment asset turnover = Revenue ÷ Assets
= 26,308 ÷ 61,141 = 0.43
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Software | Software segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment Asset Turnover: Consulting
International Business Machines Corp.; Consulting; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 19,985) | 19,107) | 17,844) | 16,257) | 16,939) |
| Assets | 14,342) | 13,481) | 11,914) | 10,548) | 10,421) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.39 | 1.42 | 1.50 | 1.54 | 1.63 |
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
Segment asset turnover = Revenue ÷ Assets
= 19,985 ÷ 14,342 = 1.39
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Consulting | Consulting segment asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: Infrastructure
International Business Machines Corp.; Infrastructure; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 14,593) | 15,288) | 14,188) | 14,533) | 15,774) |
| Assets | 11,991) | 12,243) | 11,766) | 12,378) | 12,002) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.22 | 1.25 | 1.21 | 1.17 | 1.31 |
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
Segment asset turnover = Revenue ÷ Assets
= 14,593 ÷ 11,991 = 1.22
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Infrastructure | Infrastructure segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Segment Asset Turnover: Financing
International Business Machines Corp.; Financing; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 741) | 645) | 774) | 975) | 1,215) |
| Assets | 14,409) | 15,757) | 16,880) | 24,974) | 29,460) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.05 | 0.04 | 0.05 | 0.04 | 0.04 |
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
Segment asset turnover = Revenue ÷ Assets
= 741 ÷ 14,409 = 0.05
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Financing | Financing segment asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Capital Expenditures to Depreciation
International Business Machines Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 0.73 | 0.46 | 0.47 | 0.44 | 0.76 |
| Consulting | 0.19 | 0.11 | 0.22 | 0.13 | 0.25 |
| Infrastructure | 0.82 | 0.61 | 0.57 | 0.77 | 0.45 |
| Financing | 1.88 | 1.93 | 0.67 | 0.34 | 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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Software | Software segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Consulting | Consulting segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. | |
| Infrastructure | Infrastructure segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Financing | Financing segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Software
International Business Machines Corp.; Software; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 385) | 446) | 565) | 548) | 517) |
| Depreciation/amortization of intangibles | 526) | 968) | 1,204) | 1,237) | 676) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.73 | 0.46 | 0.47 | 0.44 | 0.76 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of intangibles
= 385 ÷ 526 = 0.73
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Software | Software segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Capital Expenditures to Depreciation: Consulting
International Business Machines Corp.; Consulting; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 20) | 33) | 55) | 26) | 45) |
| Depreciation/amortization of intangibles | 106) | 289) | 250) | 207) | 179) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.19 | 0.11 | 0.22 | 0.13 | 0.25 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of intangibles
= 20 ÷ 106 = 0.19
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Consulting | Consulting segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Segment Capital Expenditures to Depreciation: Infrastructure
International Business Machines Corp.; Infrastructure; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 836) | 853) | 792) | 1,093) | 612) |
| Depreciation/amortization of intangibles | 1,018) | 1,403) | 1,399) | 1,419) | 1,348) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.82 | 0.61 | 0.57 | 0.77 | 0.45 |
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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of intangibles
= 836 ÷ 1,018 = 0.82
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Infrastructure | Infrastructure segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Financing
International Business Machines Corp.; Financing; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures/investments in intangibles | 15) | 27) | 33) | 41) | 57) |
| Depreciation/amortization of intangibles | 8) | 14) | 49) | 120) | 186) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.88 | 1.93 | 0.67 | 0.34 | 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
Segment capital expenditures to depreciation = Capital expenditures/investments in intangibles ÷ Depreciation/amortization of intangibles
= 15 ÷ 8 = 1.88
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Financing | Financing segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Revenue
International Business Machines Corp., revenue by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 26,308) | 25,037) | 24,141) | 22,927) | 22,408) |
| Consulting | 19,985) | 19,107) | 17,844) | 16,257) | 16,939) |
| Infrastructure | 14,593) | 15,288) | 14,188) | 14,533) | 15,774) |
| Financing | 741) | 645) | 774) | 975) | 1,215) |
| Total segments | 61,627) | 60,077) | 56,947) | 54,692) | 56,336) |
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).
Pre-tax income from continuing operations
International Business Machines Corp., pre-tax income from continuing operations by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 6,571) | 6,162) | 4,722) | 3,341) | 5,025) |
| Consulting | 1,918) | 1,677) | 1,449) | 1,034) | 1,344) |
| Infrastructure | 2,421) | 2,262) | 2,025) | 1,654) | 2,481) |
| Financing | 374) | 340) | 441) | 449) | 652) |
| Total segments | 11,284) | 10,441) | 8,637) | 6,478) | 9,502) |
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).
Assets
International Business Machines Corp., assets by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 61,141) | 57,186) | 59,336) | 58,558) | 58,230) |
| Consulting | 14,342) | 13,481) | 11,914) | 10,548) | 10,421) |
| Infrastructure | 11,991) | 12,243) | 11,766) | 12,378) | 12,002) |
| Financing | 14,409) | 15,757) | 16,880) | 24,974) | 29,460) |
| Total segments | 101,883) | 98,667) | 99,896) | 106,458) | 110,113) |
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).
Depreciation/amortization of intangibles
International Business Machines Corp., depreciation/amortization of intangibles by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 526) | 968) | 1,204) | 1,237) | 676) |
| Consulting | 106) | 289) | 250) | 207) | 179) |
| Infrastructure | 1,018) | 1,403) | 1,399) | 1,419) | 1,348) |
| Financing | 8) | 14) | 49) | 120) | 186) |
| Total segments | 1,658) | 2,674) | 2,902) | 2,983) | 2,389) |
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).
Capital expenditures/investments in intangibles
International Business Machines Corp., capital expenditures/investments in intangibles by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Software | 385) | 446) | 565) | 548) | 517) |
| Consulting | 20) | 33) | 55) | 26) | 45) |
| Infrastructure | 836) | 853) | 792) | 1,093) | 612) |
| Financing | 15) | 27) | 33) | 41) | 57) |
| Total segments | 1,256) | 1,359) | 1,445) | 1,708) | 1,231) |
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).