International Business Machines (IBM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,033,000 | 7,591,000 | 10,402,000 | 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 |
| Long-term debt | US$ in thousands | 49,884,000 | 52,980,000 | 54,033,000 | 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 |
| 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 |
| Return on total capital | 11.70% | 9.80% | 13.46% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,033,000K ÷ ($49,884,000K + $27,307,000K)
= 11.70%
The return on total capital of International Business Machines has shown fluctuations over the analyzed period. The ratio stood at 14.46% as of December 31, 2019, indicating a healthy return on the total capital employed by the company. However, there was a gradual decline over the subsequent quarters, reaching 7.38% by December 31, 2020.
After that downturn, there was a slight recovery in the return on total capital, with an increase to 11.00% by December 31, 2021. The ratio fluctuated around the double-digit range during the next few quarters, with values ranging from 7.49% to 11.28%.
A significant decline was observed as of September 30, 2022, where the return on total capital dropped to 2.78%. This was followed by a modest increase in the ratio over the next few quarters, reaching 11.70% by December 31, 2024.
Overall, the return on total capital for International Business Machines has shown variability over the analyzed period, with some quarters demonstrating strong performance while others experienced challenges that impacted the overall return on the capital employed by the company.
Peer comparison
Dec 31, 2024