International Business Machines (IBM)
Debt-to-equity ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 57,797,000 | 58,445,000 | 39,727,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 17,956,000 | 17,645,000 | 16,481,000 |
| Debt-to-equity ratio | 2.22 | 2.12 | 2.28 | 2.49 | 2.10 | 2.24 | 2.28 | 2.44 | 2.38 | 2.11 | 2.22 | 2.39 | 2.63 | 2.60 | 2.70 | 2.63 | 2.60 | 3.22 | 3.31 | 2.41 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $50,121,000K ÷ $22,533,000K
= 2.22
Over the past eight quarters, International Business Machines Corp. has maintained a relatively high and fluctuating debt-to-equity ratio. The ratio has ranged from 2.32 in Q4 2022 to 2.85 in Q1 2022, with an average of approximately 2.54. This indicates that the company relies heavily on debt to finance its operations and investments, compared to equity.
The upward trend in the debt-to-equity ratio from Q4 2022 to Q1 2023 suggests an increase in the proportion of debt in the company's capital structure during that period. However, the ratio decreased in subsequent quarters Q2 and Q3 2023, before slightly rising again in Q4 2023.
Overall, the fluctuating nature of International Business Machines Corp.'s debt-to-equity ratio over the past eight quarters indicates a dynamic approach to capital structure management, reflecting the company's efforts to balance its debt and equity levels for optimal financial leverage.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Debt to Equity (Quarterly Data)