International Business Machines (IBM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,023,000 | 7,502,000 | 1,639,000 | 5,743,000 | 5,590,000 |
| Total assets | US$ in thousands | 137,175,000 | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 |
| ROA | 4.39% | 5.55% | 1.29% | 4.35% | 3.58% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $6,023,000K ÷ $137,175,000K
= 4.39%
Based on the provided data, International Business Machines (IBM) has shown fluctuations in its return on assets (ROA) over the past five years.
- In December 31, 2020, IBM's ROA was 3.58%, indicating that for every dollar of assets, the company generated a profit of 3.58 cents.
- The ROA increased to 4.35% by December 31, 2021, reflecting improved efficiency in asset utilization.
- However, in December 31, 2022, the ROA dropped to 1.29%, signaling a decrease in profitability relative to its assets.
- IBM's ROA rebounded significantly in December 31, 2023, reaching 5.55%, suggesting a strong performance in generating profits from its assets.
- By December 31, 2024, the ROA slightly decreased to 4.39%, indicating a stable but slightly lower profitability compared to the previous year.
Overall, IBM's ROA has shown volatility over the years, with some periods of improvement and decline. It is important for investors and analysts to closely monitor these changes to assess the company's efficiency in generating profits from its asset base.
Peer comparison
Dec 31, 2024