International Business Machines (IBM)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 7,712,000 | 8,734,000 | 8,640,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 17,956,000 | 17,645,000 | 16,481,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $7,502,000K ÷ $22,533,000K
= 33.29%
International Business Machines Corp.'s return on equity (ROE) has experienced fluctuations over the past eight quarters. The Q4 2023 ROE of 33.29% indicates a significant improvement compared to the previous quarter, where it stood at 30.01%. This recent increase in ROE suggests that IBM has been able to generate more profits from shareholders' equity, reflecting positively on its operational efficiency and financial performance.
Looking further back, the ROE figures also show a notable increase from the relatively lower levels seen in Q1 and Q2 of 2023, indicating a positive trend in the company's ability to utilize shareholders' equity effectively to generate returns. In the earlier quarters of 2022, the ROE fluctuated, with a notable peak in Q2 before declining in the subsequent quarters.
Overall, IBM's ROE performance in the recent quarter indicates an improvement in its profitability and efficiency in utilizing equity to generate returns for shareholders. However, it is essential for investors and analysts to continue monitoring IBM's future ROE trends to assess the sustainability of this positive performance.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Return on Equity (ROE) (Quarterly Data)