International Business Machines (IBM)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 35,551,000 | 34,300,000 | 32,687,000 | 31,486,000 | 30,865,000 |
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Gross profit margin | 56.65% | 55.45% | 54.00% | 54.90% | 55.94% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $35,551,000K ÷ $62,753,000K
= 56.65%
The gross profit margin of International Business Machines (IBM) has shown fluctuations over the years based on the provided data.
- As of December 31, 2020, IBM had a gross profit margin of 55.94%, indicating that for every dollar of revenue generated, the company retained $0.5594 after accounting for the cost of goods sold.
- By December 31, 2021, the gross profit margin decreased slightly to 54.90%, possibly reflecting changes in pricing strategies, input costs, or operational efficiencies.
- The trend continued with a further decline to 54.00% by December 31, 2022, suggesting potential challenges in maintaining profitability amid evolving market dynamics.
- However, IBM managed to improve its gross profit margin to 55.45% by December 31, 2023, indicating successful efforts to enhance profitability, possibly through cost control measures or revenue optimization.
- The most recent data point, as of December 31, 2024, shows a significant increase in the gross profit margin to 56.65%, demonstrating IBM's ability to generate more profit from its core business activities.
Overall, the fluctuations in IBM's gross profit margin highlight the company's adaptability to market conditions and its effectiveness in managing the relationship between revenue and cost of goods sold. Analyzing these trends can provide insights into IBM's operational efficiency, pricing strategies, and overall financial performance.
Peer comparison
Dec 31, 2024