International Business Machines (IBM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 135,241,000 | 129,321,000 | 132,213,000 | 133,637,000 | 127,243,000 | 125,850,000 | 127,503,000 | 133,275,000 | 132,001,000 | 144,214,000 | 146,814,000 | 148,629,000 | 155,971,000 | 154,128,000 | 154,200,000 | 153,403,000 | 152,186,000 | 149,620,000 | 154,652,000 | 130,926,000 |
| 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 |
| Financial leverage ratio | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | 6.98 | 6.49 | 6.69 | 6.95 | 7.57 | 7.27 | 7.50 | 7.67 | 7.30 | 8.33 | 8.76 | 7.94 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $135,241,000K ÷ $22,533,000K
= 6.00
The financial leverage ratio of International Business Machines Corp. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 5.60 in Q3 2023 to a high of 7.00 in Q1 2022.
A financial leverage ratio of 6.00 in Q4 2023 indicates that the company has $6 of debt for every $1 of equity. This suggests that the company relies more on debt financing to support its operations and growth initiatives.
The trend shows some volatility in the financial leverage ratio, with some quarters indicating higher leverage levels (e.g., Q1 2022 at 7.00) and others lower leverage levels (e.g., Q3 2023 at 5.60).
It is important for stakeholders to monitor changes in the financial leverage ratio as excessive leverage can increase financial risk and impact the company's ability to meet its financial obligations. A high ratio indicates a higher proportion of debt in the company's capital structure, which may lead to heightened sensitivity to interest rate changes and economic downturns. Conversely, a low ratio may suggest a more conservative approach to capital structure with a stronger equity base.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Financial Leverage (Quarterly Data)