International Business Machines (IBM)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.65 | 0.68 | 0.70 | 0.69 | 0.68 | 0.70 | 0.71 | 0.68 | 0.69 | 0.70 | 0.71 | 0.70 | 0.68 | 0.69 | 0.71 | 0.72 | 0.72 | 0.73 | 0.72 | 0.72 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $49,884,000K ÷ ($49,884,000K + $27,307,000K)
= 0.65
The debt-to-capital ratio of International Business Machines has been relatively stable over the past few years, hovering around the range of 0.65 to 0.73. This ratio indicates the proportion of the company's total debt relative to its total capital, which includes both debt and equity.
Based on the provided data, we observe a decreasing trend in the debt-to-capital ratio from 0.73 as of June 30, 2020, to 0.65 by December 31, 2024. A decreasing trend in this ratio suggests that IBM has been reducing its reliance on debt financing in proportion to its overall capital structure.
Overall, the decreasing trend in the debt-to-capital ratio indicates that IBM has been managing its debt levels effectively and potentially improving its financial health by lowering its debt burden relative to its capital base. This trend may signal increased financial stability and reduced financial risk for the company.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Debt to Capital (Quarterly Data)