International Business Machines (IBM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 8,632,000 | 7,319,000 | 7,939,000 | 8,110,000 | 7,528,000 | 7,005,000 | 7,398,000 | 7,612,000 | 5,231,000 | 5,521,000 | 5,448,000 | 6,062,000 | 1,149,000 | 1,746,000 | 1,563,000 | 334,000 | 8,382,000 | 7,896,000 | 7,725,000 | 9,486,000 |
| Total assets | US$ in thousands | 137,175,000 | 134,339,000 | 137,169,000 | 135,241,000 | 129,321,000 | 132,213,000 | 133,637,000 | 127,243,000 | 125,850,000 | 127,503,000 | 133,275,000 | 132,001,000 | 144,214,000 | 146,814,000 | 148,629,000 | 155,971,000 | 154,128,000 | 154,200,000 | 153,403,000 | 152,186,000 |
| Operating ROA | 6.29% | 5.45% | 5.79% | 6.00% | 5.82% | 5.30% | 5.54% | 5.98% | 4.16% | 4.33% | 4.09% | 4.59% | 0.80% | 1.19% | 1.05% | 0.21% | 5.44% | 5.12% | 5.04% | 6.23% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $8,632,000K ÷ $137,175,000K
= 6.29%
Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. For International Business Machines, the operating ROA has fluctuated over the past few years.
From December 31, 2019, to December 31, 2020, there was a significant decline in operating ROA from 6.23% to 0.21%. This sharp decrease may indicate operational challenges or a drop in efficiency during that period. However, there was a gradual improvement in operating ROA throughout 2021 and 2022, with the ratio hovering between 1% to 6%, showing a recovery in profitability.
By the end of 2024, International Business Machines' operating ROA had reached 6.29%, indicating a return to a higher level of operational efficiency and profitability. Overall, the trend in operating ROA for IBM suggests some fluctuations but a general improvement in the company's ability to generate profits from its operational assets over the analyzed period.
Peer comparison
Dec 31, 2024