International Business Machines (IBM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 10,285,000 | 9,585,000 | 3,122,000 | 2,643,000 | 2,230,000 | 1,805,000 | 7,189,000 | 6,950,000 | 7,020,000 | 5,179,000 | 6,132,000 | 6,318,000 | 5,518,000 | 7,994,000 | 7,798,000 | 9,020,000 | 10,835,000 | 11,783,000 | 13,019,000 | 12,854,000 |
| Long-term debt | US$ in thousands | 50,121,000 | 48,828,000 | 50,691,000 | 53,826,000 | 46,189,000 | 44,942,000 | 44,328,000 | 46,545,000 | 44,917,000 | 46,926,000 | 48,735,000 | 51,206,000 | 54,217,000 | 55,129,000 | 55,449,000 | 52,685,000 | 54,102,000 | 57,797,000 | 58,445,000 | 39,727,000 |
| 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 |
| Return on total capital | 14.16% | 13.33% | 4.28% | 3.50% | 3.27% | 2.78% | 11.28% | 10.60% | 11.00% | 7.49% | 8.68% | 8.70% | 7.38% | 10.47% | 10.26% | 12.41% | 14.46% | 15.55% | 17.11% | 22.87% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $10,285,000K ÷ ($50,121,000K + $22,533,000K)
= 14.16%
The return on total capital for International Business Machines Corp. has shown a relatively stable performance over the past eight quarters. The ratios range from 8.45% to 11.86%, indicating a consistent profitability in utilizing both debt and equity capital to generate returns.
The company's return on total capital has generally been above 10%, reflecting effective management in generating profits from the total capital employed. The slight fluctuations in the ratios suggest some variability in performance, but the overall trend indicates a satisfactory level of efficiency in deploying the company's resources to generate returns for its investors.
It is essential for investors and analysts to continue monitoring this metric to assess the company's ability to sustain and improve its returns on total capital over time.
Peer comparison
Dec 31, 2023