International Business Machines (IBM)
Total 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 |
| Total assets | US$ in thousands | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 | 152,186,000 |
| Total asset turnover | 0.46 | 0.48 | 0.43 | 0.35 | 0.38 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $61,860,000K ÷ $135,241,000K
= 0.46
The total asset turnover ratio of International Business Machines Corp. has shown a decreasing trend from 0.51 in 2019 to 0.46 in 2023. This indicates that the company generated $0.46 in revenue for every dollar of assets in 2023 as compared to $0.51 in 2019.
A decreasing total asset turnover ratio could suggest that the company is becoming less efficient in generating sales from its assets over the years. It may indicate that IBM's asset base is not generating revenue as effectively as before, which could be a concern for investors and creditors.
Further analysis into the reasons behind the declining total asset turnover ratio, such as changes in the company's business model, asset utilization, or industry dynamics, would be necessary to fully understand the implications for IBM's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023