International Business Machines (IBM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,068,000 | 7,257,000 | 9,394,000 | 9,337,000 | 7,886,000 | 7,816,000 | 7,034,000 | 9,934,000 | 6,650,000 | 7,455,000 | 7,350,000 | 10,531,000 | 13,188,000 | 14,393,000 | 12,041,000 | 11,218,000 | 8,172,000 | 10,087,000 | 45,399,000 | 17,134,000 |
| Short-term investments | US$ in thousands | 373,000 | 3,721,000 | 6,904,000 | 8,057,000 | 852,000 | 1,753,000 | 524,000 | 550,000 | 600,000 | 600,000 | 600,000 | 600,000 | 600,000 | 1,200,000 | 2,063,000 | 647,000 | 696,000 | 733,000 | 874,000 | 872,000 |
| 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 |
| Cash ratio | 0.39 | 0.36 | 0.50 | 0.56 | 0.28 | 0.31 | 0.24 | 0.31 | 0.22 | 0.22 | 0.22 | 0.30 | 0.35 | 0.41 | 0.37 | 0.29 | 0.24 | 0.31 | 1.09 | 0.46 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,068,000K
+ $373,000K)
÷ $34,122,000K
= 0.39
The cash ratio of International Business Machines Corp. has fluctuated over the past eight quarters. In Q1 2023, the company's cash ratio was at its highest at 0.87, indicating that for every dollar of current liabilities, IBM had $0.87 in cash or cash equivalents to cover those liabilities. This suggests a strong liquidity position in the first quarter of 2023.
However, the cash ratio decreased in subsequent quarters, reaching its lowest point in Q2 2022 at 0.58. This downward trend may indicate a potential liquidity challenge for IBM during that period, as the company had a lower proportion of cash available to meet its short-term obligations.
Overall, IBM's cash ratio has shown some volatility, which could be influenced by various factors such as changes in operating activities, investment decisions, or financing strategies. It would be important for stakeholders to monitor this ratio closely to assess IBM's ability to meet its short-term financial obligations in a timely manner.
Peer comparison
Dec 31, 2023