International Business Machines (IBM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 32,908,000 | 29,118,000 | 29,539,000 | 39,165,000 | 38,420,000 |
| Total current liabilities | US$ in thousands | 34,122,000 | 31,505,000 | 33,619,000 | 39,869,000 | 37,701,000 |
| Current ratio | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $32,908,000K ÷ $34,122,000K
= 0.96
The current ratio of International Business Machines Corp. has shown a fluctuating trend over the past five years. The ratio stood at 0.96 as of December 31, 2023, indicating that the company's current assets were slightly less than its current liabilities. This reflects a potential liquidity concern as the company may face challenges in meeting its short-term financial obligations.
Comparing this to the previous years, the current ratio was 0.92 in 2022, 0.88 in 2021, 0.98 in 2020, and 1.02 in 2019. The declining trend from 2019 to 2021 suggests a weakening liquidity position, with the ratio falling below 1.0 in 2021 and 2022.
It's worth noting that a current ratio below 1.0 may raise concerns among investors and creditors regarding the company's ability to cover its short-term liabilities with its current assets. It is essential for International Business Machines Corp. to closely monitor and improve its liquidity position to ensure financial stability and meet its obligations in the near term.
Peer comparison
Dec 31, 2023