International Business Machines (IBM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 50,121,000 | 46,189,000 | 44,917,000 | 54,217,000 | 54,102,000 |
| Total assets | US$ in thousands | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 | 152,186,000 |
| Debt-to-assets ratio | 0.37 | 0.36 | 0.34 | 0.35 | 0.36 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $50,121,000K ÷ $135,241,000K
= 0.37
The debt-to-assets ratio of International Business Machines Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 0.42 from 0.40 in 2022, indicating that the company's proportion of debt relative to its total assets slightly increased. Despite this slight uptick, the ratio remained within a relatively stable range between 0.39 and 0.41 in the preceding years.
A debt-to-assets ratio of 0.42 in 2023 suggests that approximately 42% of IBM's total assets are financed by debt, while the remaining 58% are funded by equity. This ratio indicates the company's reliance on debt to finance its operations and investments.
It is essential to consider the trend in conjunction with other financial metrics and industry benchmarks to assess IBM's overall financial health and leverage position effectively. Additionally, analyzing the company's ability to service its debt obligations, generate sufficient cash flows, and effectively manage its capital structure will provide further insights into its financial stability and performance.
Peer comparison
Dec 31, 2023