International Business Machines (IBM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,947,000 | 13,197,000 | 14,603,000 | 13,068,000 | 7,257,000 | 9,394,000 | 9,337,000 | 7,886,000 | 7,816,000 | 7,034,000 | 9,934,000 | 6,650,000 | 7,455,000 | 7,350,000 | 10,531,000 | 13,188,000 | 14,393,000 | 12,041,000 | 11,218,000 | 8,172,000 |
| Short-term investments | US$ in thousands | 644,000 | 505,000 | 4,512,000 | 373,000 | 3,721,000 | 6,904,000 | 8,057,000 | 852,000 | 1,753,000 | 524,000 | 550,000 | 600,000 | 600,000 | 600,000 | 600,000 | 600,000 | 1,200,000 | 2,063,000 | 647,000 | 696,000 |
| Receivables | US$ in thousands | 7,642,000 | 6,203,000 | 6,676,000 | 7,725,000 | 6,039,000 | 6,368,000 | 12,626,000 | 14,209,000 | 6,289,000 | 6,626,000 | 13,725,000 | 14,977,000 | 14,669,000 | 15,823,000 | 16,067,000 | 18,738,000 | 17,870,000 | 19,447,000 | 20,669,000 | 23,795,000 |
| 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 |
| Quick ratio | 0.67 | 0.69 | 0.80 | 0.62 | 0.56 | 0.70 | 0.97 | 0.73 | 0.52 | 0.45 | 0.71 | 0.66 | 0.63 | 0.65 | 0.74 | 0.82 | 0.88 | 0.87 | 0.80 | 0.87 |
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 experienced fluctuations over the reporting periods provided. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From December 2019 to September 2021, IBM's quick ratio hovered around 0.80 to 0.88, indicating that for each dollar of current liabilities, the company had less than a dollar of highly liquid assets available to meet those obligations. This could suggest potential liquidity challenges during this period.
Starting from December 2021 to March 2023, there was a decline in the quick ratio to as low as 0.45 in June 2022, implying a significant decrease in the company's ability to cover its immediate liabilities with its current assets. This could raise concerns about IBM's short-term liquidity position and its ability to pay off short-term obligations swiftly.
However, there was a noticeable improvement in the quick ratio from March 2023 to December 2024, showing a gradual recovery to a range of 0.62 to 0.80. This suggests that IBM enhanced its liquidity position during this period, potentially due to better management of its current assets and liabilities.
The quick ratio of 0.67 as of December 31, 2024, indicates that IBM had $0.67 of quick assets available for every $1 of current liabilities. Investors, creditors, and other stakeholders may continue to monitor IBM's quick ratio to assess its short-term liquidity health and ability to handle short-term financial obligations effectively.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Quick Ratio (Quarterly Data)