International Business Machines (IBM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 22,533,000 | 21,944,000 | 18,901,000 | 20,597,000 | 20,841,000 |
| Debt-to-capital ratio | 0.69 | 0.68 | 0.70 | 0.72 | 0.72 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $50,121,000K ÷ ($50,121,000K + $22,533,000K)
= 0.69
The debt-to-capital ratio of International Business Machines Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio stands at 0.72, slightly higher than the previous year but lower than 2021. The ratio indicates that approximately 72% of the company's capital structure is funded by debt, while the remaining 28% is funded by equity.
The slight decrease in the debt-to-capital ratio from 2021 to 2022 may suggest some improvements in the company's capital structure. However, the ratio remains relatively high, indicating a significant reliance on debt financing. It is essential for investors and stakeholders to monitor this ratio closely, as a high debt-to-capital ratio can potentially indicate financial risk and impact the company's ability to meet its obligations in the long term.
Peer comparison
Dec 31, 2023