International Business Machines (IBM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 34,482,000 | 30,543,000 | 36,663,000 | 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 |
| 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 |
| Current ratio | 1.04 | 1.06 | 1.13 | 0.96 | 0.91 | 1.06 | 1.16 | 0.92 | 0.95 | 0.88 | 0.92 | 0.88 | 0.84 | 0.84 | 0.93 | 0.98 | 1.05 | 1.04 | 0.96 | 1.02 |
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 (IBM) has shown fluctuations over the past few years, based on the provided data. The current ratio is a measure of a company's ability to meet short-term obligations with its current assets.
From December 31, 2019, to March 31, 2021, IBM's current ratio experienced a gradual decline from 1.02 to 0.93. This downward trend could indicate potential liquidity challenges or inefficiencies in managing current assets and liabilities during this period.
However, from March 31, 2021, to March 31, 2024, there was a mix of fluctuations with some periods showing improvement in the current ratio. Notably, there was a significant increase in the current ratio from 0.88 as of June 30, 2022, to 1.16 as of March 31, 2023. This suggests a strengthening ability to cover short-term obligations with current assets during that specific quarter.
The current ratio dropped to 0.91 as of September 30, 2023, rebounded to 0.96 by December 31, 2023, and further improved to 1.13 by March 31, 2024. These fluctuations could be attributed to changes in the composition of current assets and liabilities, as well as shifts in market conditions or business operations.
As of December 31, 2024, the current ratio stood at 1.04, indicating that IBM's current assets were approximately equal to its current liabilities. A current ratio above 1 generally suggests that a company has more than enough current assets to cover its short-term obligations, which is a favorable indicator of financial health and liquidity.
Overall, analyzing IBM's current ratio trend provides insights into the company's short-term liquidity position and its ability to manage current obligations efficiently. Investors and stakeholders should continue monitoring the current ratio along with other financial metrics to assess IBM's financial performance and stability.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Current Ratio (Quarterly Data)