International Business Machines (IBM)
Profitability ratios
Return on sales
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 55.45% | 55.04% | 54.64% | 54.24% | 54.00% | 53.78% | 54.01% | 54.48% | 54.90% | 65.28% | 62.11% | 59.00% | 55.94% | 56.11% | 55.48% | 55.01% | 54.64% | 46.77% | 46.93% | 46.67% |
| Operating profit margin | 13.11% | 12.31% | 11.57% | 12.21% | 12.58% | 8.64% | 9.25% | 9.34% | 10.57% | 2.70% | 3.72% | 3.08% | 0.61% | 15.08% | 14.08% | 13.53% | 16.44% | 12.63% | 13.76% | 14.48% |
| Pretax margin | 14.03% | 13.19% | 2.85% | 2.26% | 1.68% | 0.99% | 10.03% | 9.88% | 10.23% | 9.42% | 10.52% | 9.99% | 7.66% | 11.99% | 11.35% | 13.24% | 16.44% | 13.74% | 15.51% | 15.36% |
| Net profit margin | 12.13% | 11.32% | 3.34% | 3.03% | 2.71% | 2.08% | 9.36% | 9.46% | 10.01% | 11.19% | 11.38% | 10.57% | 10.13% | 14.22% | 14.05% | 15.79% | 16.34% | 10.00% | 11.22% | 10.98% |
The profitability ratios of International Business Machines Corp. can provide insights into the company's ability to generate profits relative to its revenue and expenses.
The gross profit margin, which indicates the percentage of revenue remaining after accounting for the cost of goods sold, has shown a consistent trend of hovering around the mid-50% range over the quarters, reflecting IBM's efficiency in managing production costs.
The operating profit margin, which reveals the proportion of revenue that translates into operating income, has also exhibited stability, with slight fluctuations within the low to mid-teens range. This suggests that IBM has been effectively controlling its operating expenses to maintain profitability.
The pretax margin, representing the percentage of revenue left after accounting for all operating expenses but before taxes, has shown significant variation across quarters. The drastic increase in Q4 2023 compared to the previous quarters indicates a notable improvement in IBM's operational efficiency and cost management during that period.
The net profit margin, which reflects the proportion of revenue that results in net income after all expenses and taxes, has generally been on an upward trajectory, with occasional fluctuations. This demonstrates IBM's ability to efficiently manage its financial obligations and generate bottom-line profits.
Overall, International Business Machines Corp. has displayed a commendable performance in maintaining healthy profitability ratios, indicating sound financial management and operational efficiency.
Return on investment
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 6.51% | 6.93% | 8.71% |
| Return on assets (ROA) | 5.55% | 5.35% | 1.53% | 1.37% | 1.29% | 1.00% | 4.38% | 4.14% | 4.35% | 3.30% | 3.63% | 3.61% | 3.58% | 5.13% | 5.11% | 5.88% | 6.20% | 5.15% | 5.65% | 6.60% |
| Return on total capital | 14.16% | 13.33% | 4.28% | 3.50% | 3.27% | 2.78% | 11.28% | 10.60% | 11.00% | 7.49% | 8.68% | 8.70% | 7.38% | 10.47% | 10.26% | 12.41% | 14.46% | 15.55% | 17.11% | 22.87% |
| Return on equity (ROE) | 33.29% | 30.00% | 9.12% | 8.48% | 7.47% | 6.29% | 28.79% | 28.98% | 30.38% | 21.44% | 24.31% | 25.11% | 27.14% | 37.27% | 38.33% | 45.08% | 45.25% | 42.95% | 49.50% | 52.42% |
International Business Machines Corp.'s profitability ratios have shown variability over the quarters with some fluctuations in key metrics.
Firstly, the Operating Return on Assets (Operating ROA) has been relatively stable around the range of 5.58% to 6.30% in the most recent quarters. This indicates that the company has been able to efficiently generate profits from its assets, with Q4 2023 showing a slight increase compared to the previous quarters.
Return on Assets (ROA) has also improved gradually over the quarters, with a notable spike in Q4 2023 to 5.55%, demonstrating the company's effectiveness in generating earnings from its total assets.
The Return on Total Capital has shown a similar trend of improvement, reaching a high of 11.86% in Q4 2023, indicating that the company has been able to generate better returns on its total invested capital over time.
Lastly, the Return on Equity (ROE) has exhibited significant variability, with a remarkable surge to 33.29% in Q4 2023, signifying that the shareholders have seen a substantial increase in returns on their equity investment in the company.
Overall, International Business Machines Corp. has demonstrated an ability to generate favorable returns from its assets, capital, and equity, with signs of improvement in profitability ratios in recent quarters.
See also:
International Business Machines Profitability Ratios (Quarterly Data)