International Business Machines (IBM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,502,000 | 1,639,000 | 5,743,000 | 5,590,000 | 9,431,000 |
| Total assets | US$ in thousands | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 | 152,186,000 |
| ROA | 5.55% | 1.29% | 4.35% | 3.58% | 6.20% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $7,502,000K ÷ $135,241,000K
= 5.55%
The return on assets (ROA) for International Business Machines Corp. has varied over the past five years. In 2023, the ROA increased significantly to 5.55%, up from 1.29% in 2022. This improvement indicates that the company was able to generate more net income relative to its total assets in 2023.
Comparing to the previous years, the ROA was also higher in 2021 at 4.35% and 2019 at 6.20%, indicating that the company's profitability in relation to its assets was stronger during those years. The ROA was slightly lower in 2020 at 3.58%.
Overall, these fluctuations in the ROA suggest that International Business Machines Corp. has experienced varying levels of efficiency in generating profits from its assets over the past five years. Investors and analysts may want to further investigate the company's financial performance and asset management strategies to better understand the factors driving these changes in ROA.
Peer comparison
Dec 31, 2023