International Business Machines (IBM)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,023,000 | 7,502,000 | 1,639,000 | 5,743,000 | 5,590,000 |
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Net profit margin | 9.60% | 12.13% | 2.71% | 10.01% | 10.13% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $6,023,000K ÷ $62,753,000K
= 9.60%
Based on the provided data, the net profit margin of International Business Machines (IBM) has exhibited some fluctuation over the years. In 2020, the net profit margin was 10.13%. This indicates that 10.13% of IBM's total revenue generated in 2020 translated into net profit after all expenses were accounted for.
In 2021, the net profit margin slightly decreased to 10.01%, showing a small dip compared to the previous year. However, in 2022, there was a significant decrease in the net profit margin to 2.71%. This sharp decline suggests that IBM may have experienced challenges in controlling its expenses or generating sufficient revenue during that period.
The following year, in 2023, the net profit margin improved substantially to 12.13%, indicating a strong performance in converting revenue to net profit. This increase may have been driven by improved cost management or increased revenue generation strategies.
Lastly, in 2024, the net profit margin declined again to 9.60%. Although lower than the previous year, this figure is still relatively healthy and indicates that IBM continues to generate a solid level of profit relative to its total revenue.
Overall, IBM's net profit margin has displayed variability in recent years, with fluctuations reflecting changes in the company's efficiency in managing costs and generating profits. It is essential for IBM to monitor and address factors impacting its net profit margin to ensure sustainable financial health and profitability.
Peer comparison
Dec 31, 2024