International Business Machines (IBM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 | 57,714,000 |
| Property, plant and equipment | US$ in thousands | -472,000 | 5,334,000 | 5,694,000 | 6,205,000 | 10,010,000 |
| Fixed asset turnover | — | 11.35 | 10.07 | 8.89 | 5.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $61,860,000K ÷ $-472,000K
= —
The fixed asset turnover ratio for International Business Machines Corp. has shown a generally increasing trend from 2019 to 2023. This indicates that the company has been generating more revenue per dollar of fixed assets over the years. The ratio stood at 7.71 in 2019 and increased to 11.25 in 2023, reflecting a significant improvement in utilizing its fixed assets efficiently to generate sales. This improvement suggests that IBM has been effectively managing its fixed assets to drive revenue growth and increase operational efficiency. Overall, the upward trend in the fixed asset turnover ratio highlights the company's ability to optimize its fixed asset investments and generate higher sales with its existing asset base.
Peer comparison
Dec 31, 2023