International Business Machines (IBM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 38,121,000 | 77,517,000 | 52,705,000 |
| 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 |
| Current ratio | 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 | 1.09 | 1.83 | 1.36 |
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. (IBM) fluctuated over the past eight quarters, ranging from a low of 0.88 in Q2 2022 to a high of 1.16 in Q1 2023. An ideal current ratio is typically considered to be 2:1 or higher, indicating that the company has more current assets than liabilities to cover its short-term obligations.
IBM's current ratio has been below this benchmark in all reported quarters, with Q2 2023 showing the closest proximity to the ideal level at 1.06. The quarterly variation suggests fluctuations in the company's liquidity position and ability to meet its short-term financial obligations.
It is important to note that a current ratio below 1 may raise concerns about the company's ability to pay off its current liabilities with its current assets. Investors and analysts may want to further investigate the reasons behind this trend, such as changes in working capital management, debt levels, or the composition of current assets and liabilities.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Current Ratio (Quarterly Data)