International Business Machines (IBM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 27,307,000 | 22,533,000 | 21,944,000 | 18,901,000 | 20,597,000 |
| ROE | 22.06% | 33.29% | 7.47% | 30.38% | 27.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,023,000K ÷ $27,307,000K
= 22.06%
International Business Machines' return on equity (ROE) has shown fluctuations over the years, as per the data provided. In 2020, the ROE stood at 27.14%, indicating that for every dollar of equity, the company generated a profit of 27.14 cents. The following year, in 2021, the ROE increased to 30.38%, signaling an improvement in the company's efficiency in utilizing shareholders' equity to generate profits.
However, in 2022, there was a significant decrease in ROE to 7.47%, which may raise concerns about the company's profitability and efficiency in that particular year. The subsequent year, 2023, saw a significant rebound in ROE to 33.29%, showcasing a strong performance that year. In 2024, the ROE decreased slightly to 22.06%, but still remained at a respectable level.
Overall, the trend in ROE for International Business Machines exhibits variability, with some years indicating strong profitability and efficient use of equity, while others showing fluctuations. It is crucial for investors and stakeholders to closely monitor ROE trends to assess the company's performance and management effectiveness in generating returns for shareholders.
Peer comparison
Dec 31, 2024