International Business Machines (IBM)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 64,365,000 | 61,563,000 | 62,070,000 | 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 |
| Property, plant and equipment | US$ in thousands | -979,000 | 5,614,000 | 5,594,000 | -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 |
| Fixed asset turnover | — | 10.97 | 11.10 | — | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $64,365,000K ÷ $-979,000K
= —
International Business Machines' Fixed Asset Turnover ratio shows the company's efficiency in generating revenue from its fixed assets. The ratio has shown fluctuating trends over the past few years. From December 2019 to December 2020, the ratio improved significantly from 5.77 to 8.89, indicating a more efficient utilization of fixed assets to generate sales.
However, from March 2021 to December 2024, the Fixed Asset Turnover ratio started declining gradually, reaching a value of 10.97 as of September 30, 2024. This may suggest a decrease in the efficiency of IBM in generating revenue from its fixed assets during this period.
It is particularly interesting to note the peak values observed in the period from March 2022 to March 2023, where the ratio consistently increased, indicating a period of improved efficiency in utilizing fixed assets to drive sales.
The missing data points for December 31, 2023, and December 31, 2024, make it difficult to analyze the most recent trend effectively. It would be essential to monitor the Fixed Asset Turnover ratio closely in upcoming periods to assess if the declining trend continues or if IBM can improve its asset utilization efficiency in generating sales.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Net Fixed Asset Turnover (Quarterly Data)