International Business Machines (IBM)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 49,884,000 | 50,121,000 | 46,189,000 | 44,917,000 | 54,217,000 |
| Total stockholders’ equity | US$ in thousands | 27,307,000 | 22,533,000 | 21,944,000 | 18,901,000 | 20,597,000 |
| Debt-to-equity ratio | 1.83 | 2.22 | 2.10 | 2.38 | 2.63 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $49,884,000K ÷ $27,307,000K
= 1.83
The debt-to-equity ratio of International Business Machines has been fluctuating over the past five years, starting at 2.63 in December 2020 and decreasing to 1.83 by December 2024. This ratio indicates the proportion of the company's debt relative to its equity. A high debt-to-equity ratio suggests that the company is financing a larger portion of its operations through debt, which can potentially indicate higher financial risk.
The decreasing trend in IBM's debt-to-equity ratio from 2020 to 2024 suggests a reduction in the company's reliance on debt to finance its operations and investments. This may be viewed positively by investors and creditors as it indicates a stronger financial position and reduced risk of default. However, it is essential to consider other factors such as the company's profitability, cash flow, and overall financial health when evaluating its financial stability and performance.
Peer comparison
Dec 31, 2024