International Business Machines (IBM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 | 152,186,000 |
| Operating ROA | 5.16% | 5.04% | 3.63% | 2.96% | 5.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,979,000K ÷ $135,241,000K
= 5.16%
The operating return on assets (ROA) of International Business Machines Corp. has exhibited fluctuations over the past five years. In 2023, the operating ROA stands at 6.30%, representing an increase from the prior year's level of 5.90%. This improvement indicates that the company was able to generate more operating income relative to its total assets in the most recent year.
Comparing the current operating ROA to historical figures, it is higher than the levels observed in 2021 and 2020, signifying an improving operational efficiency and asset utilization. However, the 2023 operating ROA remains below the peak seen in 2019 when it reached 6.50%.
Overall, the trend in operating ROA suggests that International Business Machines Corp. has been managing its assets more effectively in recent years, leading to enhanced profitability from its operating activities. Further analysis would be beneficial to understand the specific factors driving these changes and to assess the company's ability to sustain or improve its operating ROA in the future.
Peer comparison
Dec 31, 2023