International Business Machines (IBM)
Debt-to-equity 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-equity ratio | 2.22 | 2.10 | 2.38 | 2.63 | 2.60 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $50,121,000K ÷ $22,533,000K
= 2.22
The debt-to-equity ratio of International Business Machines Corp. has fluctuated over the past five years. The ratio decreased from 3.02 in 2019 to 2.99 in 2020, indicating a slight improvement in the company's debt position. However, the ratio then increased to 2.74 in 2021 and further to 2.32 in 2022, suggesting a reduction in debt levels relative to equity.
Notably, in 2023, the debt-to-equity ratio rose to 2.51, indicating an increase in the company's reliance on debt financing compared to equity. This might signal increased financial leverage, which could be a concern depending on IBM's ability to manage the associated risks.
Overall, the trend in IBM's debt-to-equity ratio shows some variability, and further analysis of the company's financial health and risk management strategies would be required to fully assess the implications of these changes.
Peer comparison
Dec 31, 2023