International Business Machines (IBM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,947,000 | 13,068,000 | 7,886,000 | 6,650,000 | 13,188,000 |
| Short-term investments | US$ in thousands | 644,000 | 373,000 | 852,000 | 600,000 | 600,000 |
| Receivables | US$ in thousands | 7,642,000 | 7,725,000 | 14,209,000 | 14,977,000 | 18,738,000 |
| Total current liabilities | US$ in thousands | 33,142,000 | 34,122,000 | 31,505,000 | 33,619,000 | 39,869,000 |
| Quick ratio | 0.67 | 0.62 | 0.73 | 0.66 | 0.82 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,947,000K
+ $644,000K
+ $7,642,000K)
÷ $33,142,000K
= 0.67
The quick ratio of International Business Machines (IBM) has shown fluctuations over the years. As of December 31, 2020, the quick ratio stood at 0.82, indicating that IBM had $0.82 in liquid assets available to cover each dollar of current liabilities.
However, the quick ratio decreased to 0.66 by December 31, 2021, suggesting a potential liquidity challenge as IBM's ability to meet short-term obligations diminished compared to the previous year.
By December 31, 2022, the quick ratio slightly improved to 0.73, which may indicate a partial recovery in IBM's liquidity position.
The quick ratio then dropped to 0.62 by December 31, 2023, signaling a decreased ability to cover current liabilities with liquid assets.
Subsequently, as of December 31, 2024, the quick ratio increased to 0.67, yet it remains below 1.0, indicating that IBM may still be reliant on selling inventory or receivables to meet its short-term obligations.
Overall, the fluctuating trend of IBM's quick ratio over the years suggests a varying ability to meet short-term liabilities with available liquid assets. Further analysis of IBM's liquidity management and asset composition may be necessary to fully evaluate its financial health.
Peer comparison
Dec 31, 2024