International Business Machines (IBM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 10,087,000 | 45,399,000 | 17,134,000 |
| Short-term investments | US$ in thousands | 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 | 733,000 | 874,000 | 872,000 |
| Receivables | US$ in thousands | 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 | 20,959,000 | 24,738,000 | 27,945,000 |
| 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 |
| Quick ratio | 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 | 0.91 | 1.68 | 1.18 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,068,000K
+ $373,000K
+ $7,725,000K)
÷ $34,122,000K
= 0.62
The quick ratio of International Business Machines Corp. has shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
In Q1 2023, the quick ratio was 1.08, indicating that IBM had $1.08 in liquid assets available to cover each dollar of current liabilities. This suggests a strong ability to meet short-term obligations using liquid assets.
However, in the subsequent quarters, the quick ratio decreased. In Q2 and Q3 2023, the quick ratio dropped to 0.99 and 0.84, respectively, which may signify a slight weakening in IBM's ability to cover short-term liabilities with liquid assets.
Comparing the latest quarter, Q4 2023, with the corresponding quarter of the previous year, Q4 2022, the quick ratio remained constant at 0.84. This suggests a consistent liquidity position in the most recent quarter compared to the same period last year.
Overall, while the quick ratio of IBM has shown some variability over the past eight quarters, it is essential to monitor this ratio closely to ensure the company can continue to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Quick Ratio (Quarterly Data)