International Business Machines (IBM)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 61,860,000 | 61,169,000 | 60,524,000 | 60,584,000 | 60,529,000 | 60,533,000 | 59,677,000 | 58,360,000 | 57,350,000 | 42,582,000 | 46,891,000 | 50,796,000 | 55,180,000 | 55,598,000 | 56,066,000 | 57,104,000 | 57,715,000 | 77,132,000 | 77,860,000 | 78,702,000 |
| Property, plant and equipment | US$ in thousands | -472,000 | 5,369,000 | 5,443,000 | 5,344,000 | 5,334,000 | 5,150,000 | 5,275,000 | 5,559,000 | 5,694,000 | 9,138,000 | 9,423,000 | 9,452,000 | 6,205,000 | 9,958,000 | 9,709,000 | 9,626,000 | 10,010,000 | 10,063,000 | 10,202,000 | 10,675,000 |
| Fixed asset turnover | — | 11.39 | 11.12 | 11.34 | 11.35 | 11.75 | 11.31 | 10.50 | 10.07 | 4.66 | 4.98 | 5.37 | 8.89 | 5.58 | 5.77 | 5.93 | 5.77 | 7.66 | 7.63 | 7.37 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $61,860,000K ÷ $-472,000K
= —
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its fixed assets. The calculation is done by dividing the total revenue by the average fixed assets for a specific period.
For International Business Machines Corp., the fixed asset turnover ratio has been relatively stable and high over the past eight quarters, ranging from 9.15 to 11.39. This indicates that the company has been effectively utilizing its fixed assets to generate sales.
A high fixed asset turnover ratio is generally seen as positive, as it suggests that the company is efficiently using its plant, property, and equipment to generate revenue. In the case of IBM, the consistent high ratios reflect the company's ability to effectively deploy and manage its fixed assets to drive revenue growth.
Overall, the trend of the fixed asset turnover ratio for IBM shows a strong performance in terms of asset utilization, signaling operational efficiency and effective resource management within the organization.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Net Fixed Asset Turnover (Quarterly Data)