International Business Machines (IBM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,979,000 | 6,408,000 | 4,786,000 | 4,609,000 | 9,004,000 |
| Revenue | US$ in thousands | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 | 57,714,000 |
| Operating profit margin | 11.28% | 10.59% | 8.35% | 8.35% | 15.60% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $6,979,000K ÷ $61,860,000K
= 11.28%
The operating profit margin of International Business Machines Corp. has shown fluctuations over the past five years. The trend indicates an increase in operating profit margin from 8.37% in 2020 to 13.78% in 2023, with some variability in the intervening years. This improvement suggests the company's ability to generate more operating profit from each dollar of revenue over time, demonstrating better operational efficiency and cost management. However, it is important to note that the margin was higher in 2019 at 12.83% compared to subsequent years, indicating that the company may have faced challenges in maintaining profitability in the years following 2019. Overall, the recent increase in operating profit margin is a positive sign for the company's financial health and operational performance.
Peer comparison
Dec 31, 2023