International Business Machines (IBM)
Debt-to-equity 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-equity ratio | 1.83 | 2.17 | 2.32 | 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 |
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 (IBM) has shown fluctuations over the period analyzed, ranging from a high of 2.70 in June 2020 to a low of 1.83 in December 2024, with the most recent data point available. This ratio indicates that IBM has been utilizing more debt relative to equity in its capital structure during most periods.
The trend of the debt-to-equity ratio for IBM appears to have decreased from the peak in June 2020 to a low in December 2024. A decreasing trend in this ratio may suggest a decreasing dependency on debt financing relative to equity, potentially indicating a stronger financial position and lower leverage levels for the company.
Overall, the debt-to-equity ratio for IBM has remained relatively high throughout the periods analyzed, hovering above 2 for most quarters. This signifies that IBM has been relying significantly on debt to finance its operations and investments, which can indicate higher financial risk and a higher level of leverage. Investors and stakeholders may closely monitor this ratio to assess IBM's capital structure and financial risk profile.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Debt to Equity (Quarterly Data)