International Business Machines (IBM)
Total 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 |
| Total assets | US$ in thousands | 137,175,000 | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 |
| Total asset turnover | 0.46 | 0.46 | 0.48 | 0.43 | 0.35 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $62,753,000K ÷ $137,175,000K
= 0.46
Total asset turnover is an important financial ratio that indicates how efficiently a company is utilizing its assets to generate revenue. In the case of International Business Machines (IBM), the total asset turnover has shown a fluctuating trend over the past five years.
As of December 31, 2020, IBM's total asset turnover stood at 0.35, indicating that for every dollar of assets, the company generated $0.35 in revenue. There was a notable improvement in this ratio by December 31, 2021, reaching 0.43, suggesting a better utilization of assets to generate revenue.
By December 31, 2022, the total asset turnover further increased to 0.48, signaling a more efficient use of assets to drive revenue growth. However, there was a slight decline in this ratio by December 31, 2023, where it dropped to 0.46.
The total asset turnover remained stable at 0.46 by December 31, 2024, indicating that IBM maintained its efficiency in generating revenue relative to its asset base.
Overall, IBM's total asset turnover has shown fluctuations over the years, but the general trend reflects an improvement in the company's ability to generate revenue from its assets, which is a positive sign for its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024