International Business Machines (IBM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 137,175,000 | 135,241,000 | 127,243,000 | 132,001,000 | 155,971,000 |
| Total stockholders’ equity | US$ in thousands | 27,307,000 | 22,533,000 | 21,944,000 | 18,901,000 | 20,597,000 |
| Financial leverage ratio | 5.02 | 6.00 | 5.80 | 6.98 | 7.57 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $137,175,000K ÷ $27,307,000K
= 5.02
The financial leverage ratio of International Business Machines has shown a declining trend over the past five years, starting at 7.57 in December 31, 2020, and decreasing to 5.02 by December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, which generally indicates improved financial stability and lower risk. The decreasing ratio suggests that IBM has been effectively managing its debt levels and potentially improving its financial health over the years. However, a financial leverage ratio of 5.02 as of December 31, 2024 still indicates that IBM has significant debt relative to its equity, which investors may want to monitor closely for the company's overall financial risk.
Peer comparison
Dec 31, 2024