International Business Machines (IBM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 137,175,000 | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 |
| Operating ROA | 4.30% | 5.16% | 5.04% | 3.63% | 2.96% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $5,899,000K ÷ $137,175,000K
= 4.30%
The operating return on assets (operating ROA) of International Business Machines has shown a positive trend over the years based on the data provided.
In December 31, 2020, the operating ROA was 2.96%. This indicates that for every dollar of assets the company had, it generated a profit of 2.96 cents from its operations.
By December 31, 2021, the operating ROA increased to 3.63%, showing an improvement in the company's operational efficiency and profitability.
The trend continued to strengthen in December 31, 2022, with the operating ROA reaching 5.04%, marking a significant increase in the company's ability to generate profits from its assets.
In December 31, 2023, the operating ROA slightly increased to 5.16%, indicating that the company continued to effectively utilize its assets to generate returns from its operations.
However, by December 31, 2024, the operating ROA decreased to 4.30%, suggesting a slight dip in the company's operational efficiency compared to the previous year.
Overall, the data indicates that International Business Machines has been able to steadily improve its operational return on assets over the years, with fluctuations observed in recent periods. This trend suggests that the company has been effectively managing its assets to generate profits from its operations.
Peer comparison
Dec 31, 2024