International Business Machines (IBM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,947,000 | 13,197,000 | 14,603,000 | 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 |
| Short-term investments | US$ in thousands | 644,000 | 505,000 | 4,512,000 | 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 |
| Total current liabilities | US$ in thousands | 33,142,000 | 28,853,000 | 32,397,000 | 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 |
| Cash ratio | 0.44 | 0.47 | 0.59 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,947,000K
+ $644,000K)
÷ $33,142,000K
= 0.44
The cash ratio of International Business Machines has fluctuated over the period from December 31, 2019, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Starting at 0.24 on December 31, 2019, the ratio improved to 0.41 by September 30, 2020, signifying an increase in liquidity. However, it decreased to 0.22 by June 30, 2021, and remained at this level until December 31, 2021.
The ratio saw a significant improvement to 0.56 on March 31, 2023, indicating an increase in the company's ability to cover short-term obligations with its available cash reserves. This improvement continued into December 31, 2023, when the ratio stood at 0.39.
By March 31, 2024, the cash ratio reached 0.59, reflecting a strong liquidity position. However, the ratio decreased to 0.44 by December 31, 2024, showcasing a slight decline but still maintaining a healthy level of liquidity.
Overall, the cash ratio of International Business Machines has shown fluctuations over the analyzed period but generally demonstrates the company's ability to meet short-term obligations with its available cash and cash equivalents.
Peer comparison
Dec 31, 2024