International Business Machines (IBM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Property, plant and equipment | US$ in thousands | -979,000 | -472,000 | 5,334,000 | 5,694,000 | 6,205,000 |
| Fixed asset turnover | — | — | 11.35 | 10.07 | 8.89 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $62,753,000K ÷ $-979,000K
= —
The fixed asset turnover ratio reflects International Business Machines' ability to generate revenue from its investment in fixed assets. Looking at the trend from December 31, 2020, to December 31, 2023, we see a consistent improvement in this ratio, with values increasing from 8.89 to 11.35. This indicates that IBM is becoming more efficient in utilizing its fixed assets to generate sales.
However, the absence of data for December 31, 2023, and December 31, 2024 prevents us from assessing the continuation of this positive trend. It would be important to monitor future financial statements to understand whether IBM can sustain or further improve its efficiency in turning fixed assets into revenue.
Overall, the increasing trend in fixed asset turnover suggests that IBM is making better use of its fixed assets over time, a positive sign for investors and stakeholders interested in the company's operational efficiency.
Peer comparison
Dec 31, 2024