International Business Machines (IBM)
Working capital 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 |
| Total current assets | US$ in thousands | 32,908,000 | 27,705,000 | 34,458,000 | 35,982,000 | 29,118,000 | 28,999,000 | 27,896,000 | 31,330,000 | 29,539,000 | 29,967,000 | 30,774,000 | 34,038,000 | 39,165,000 | 39,845,000 | 39,953,000 | 38,931,000 | 38,420,000 | 38,121,000 | 77,517,000 | 52,705,000 |
| Total current liabilities | US$ in thousands | 34,122,000 | 30,606,000 | 32,513,000 | 30,993,000 | 31,505,000 | 30,466,000 | 31,844,000 | 34,056,000 | 33,619,000 | 35,832,000 | 36,616,000 | 36,542,000 | 39,869,000 | 37,993,000 | 38,442,000 | 40,673,000 | 37,701,000 | 35,066,000 | 42,351,000 | 38,871,000 |
| Working capital turnover | — | — | 31.12 | 12.14 | — | — | — | — | — | — | — | — | — | 30.02 | 37.11 | — | 80.27 | 25.25 | 2.21 | 5.69 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $61,860,000K ÷ ($32,908,000K – $34,122,000K)
= —
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital. In the case of International Business Machines Corp., we are provided with working capital turnover values for the second and first quarters of 2023.
The working capital turnover ratio for Q2 2023 is 31.13, indicating that for every dollar of working capital invested, the company generated $31.13 in sales during that quarter. This sharp increase from the previous period suggests that IBM effectively managed its working capital to drive higher sales revenue during Q2 2023.
However, in Q1 2023, the working capital turnover was significantly lower at 12.14, reflecting a decrease in the efficiency of working capital utilization compared to Q2 2023. This might indicate potential issues in managing working capital during the first quarter of 2023.
Without information on working capital turnovers for other quarters, it is challenging to assess the overall trend or the company's performance concerning working capital turnover. Additional data from preceding and subsequent periods would be necessary to provide a more comprehensive analysis of IBM's working capital turnover efficiency.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Working Capital Turnover (Quarterly Data)