International Business Machines (IBM)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 7,477,000 | 6,267,000 | 8,180,000 | 7,502,000 | 6,924,000 | 2,024,000 | 1,833,000 | 1,639,000 | 1,262,000 | 5,588,000 | 5,521,000 | 5,743,000 | 4,766,000 | 5,334,000 | 5,370,000 | 5,590,000 | 7,904,000 | 7,878,000 | 9,015,000 | 9,431,000 |
| Total stockholders’ equity | US$ in thousands | 27,307,000 | 24,448,000 | 23,261,000 | 22,533,000 | 23,081,000 | 22,201,000 | 21,604,000 | 21,944,000 | 20,076,000 | 19,409,000 | 19,050,000 | 18,901,000 | 22,228,000 | 21,942,000 | 21,389,000 | 20,597,000 | 21,208,000 | 20,551,000 | 19,999,000 | 20,841,000 |
| ROE | 27.38% | 25.63% | 35.17% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $7,477,000K ÷ $27,307,000K
= 27.38%
International Business Machines' Return on Equity (ROE) has showed fluctuations over the past few years.
Starting from a strong position of 45.25% in December 2019, the ROE remained relatively stable above 45% until June 2020, when it started to decrease gradually. By September 2021, the ROE had dropped to 21.44%, reflecting a significant decline in profitability.
However, there was a slight recovery by December 2021, with the ROE climbing back to 30.38%. This positive trend continued into the first half of 2023, with the ROE reaching 35.17% in March 2024, showing signs of improvement.
Despite this improvement, the ROE dipped to 25.63% by September 2024, indicating a slight setback in profitability. By the end of December 2024, the ROE had rebounded slightly to 27.38%.
Overall, despite the fluctuations, International Business Machines' ROE has demonstrated resilience and an ability to recover from periods of decline. It will be important for investors and stakeholders to monitor future financial performance to assess the company's profitability and efficiency in generating returns for shareholders.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Return on Equity (ROE) (Quarterly Data)