International Business Machines (IBM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 34,482,000 | 32,908,000 | 29,118,000 | 29,539,000 | 39,165,000 |
| Total current liabilities | US$ in thousands | 33,142,000 | 34,122,000 | 31,505,000 | 33,619,000 | 39,869,000 |
| Current ratio | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $34,482,000K ÷ $33,142,000K
= 1.04
The current ratio of International Business Machines has exhibited some fluctuation over the past five years. The ratio was 0.98 as of December 31, 2020, indicating that its current assets were slightly less than its current liabilities. Subsequently, the ratio decreased to 0.88 by December 31, 2021, signaling a tighter liquidity position.
However, there was a slight improvement in the current ratio to 0.92 as of December 31, 2022, although it still remained below 1. This suggests that IBM may have faced challenges in meeting its short-term obligations with its current assets during this period.
By December 31, 2023, the current ratio increased further to 0.96, indicating a modest improvement in liquidity, but it still fell short of the ideal ratio of 1.0. Finally, as of December 31, 2024, the current ratio improved to 1.04, surpassing 1 and indicating that IBM had more current assets than current liabilities, potentially enhancing its ability to cover short-term obligations.
Overall, the trend in IBM's current ratio reflects some variability but shows a recent positive trajectory towards a more comfortable liquidity position, suggesting a potentially improved ability to meet its short-term liabilities.
Peer comparison
Dec 31, 2024