International Business Machines (IBM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,899,000 | 6,979,000 | 6,408,000 | 4,786,000 | 4,609,000 |
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Operating profit margin | 9.40% | 11.28% | 10.59% | 8.35% | 8.35% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $5,899,000K ÷ $62,753,000K
= 9.40%
The operating profit margin of International Business Machines (IBM) has shown fluctuations over the past five years. In December 2020 and December 2021, the operating profit margin remained steady at 8.35%. However, there was a notable increase in December 2022, with the margin rising to 10.59%. This upward trend continued in December 2023, reaching 11.28%, representing a significant improvement in profitability.
However, there was a slight decrease in December 2024, with the operating profit margin declining to 9.40%. This decrease might indicate potential challenges or adjustments made by IBM in that particular year. Overall, IBM has demonstrated relatively stable operating profit margins, with periodic fluctuations reflecting changes in business performance and efficiency. It is essential for IBM to continue monitoring and managing its operating costs and revenue generation to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024