International Business Machines Corp. (IBM)

Ratios (Summary)

International Business Machines Corp., liquidity ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current ratio	1.13	1.21	1.19	1.36	1.15
Quick ratio	0.96	0.98	0.98	1.13	0.95
Cash ratio	0.26	0.28	0.29	0.39	0.30

Source: Based on data from International Business Machines Corp. Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	International Business Machines Corp.'s current ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	International Business Machines Corp.'s quick ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	International Business Machines Corp.'s cash ratio deteriorated from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Current assets	49,433	50,928	48,116	48,937	49,004
Current liabilities	43,625	42,123	40,562	36,003	42,435
Current Ratio, Comparison to Industry
International Business Machines Corp.¹	1.13	1.21	1.19	1.36	1.15
Industry, Technology	1.78	1.73	1.67	1.78	1.44

Source: Based on data from International Business Machines Corp. Annual Reports

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 49,433 ÷ 43,625 = 1.13

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	International Business Machines Corp.'s current ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	10,412	11,922	10,661	12,183	12,741
Marketable securities	717	–	990	1,791	166
Notes and accounts receivable - trade, net of allowances	10,667	11,179	10,834	10,736	10,906
Short-term financing receivables, net of allowances	18,038	16,901	16,257	14,914	15,477
Other accounts receivable, net of allowances	1,873	1,481	1,134	1,143	1,172
Total quick assets	41,707	41,483	39,876	40,767	40,462
Current liabilities	43,625	42,123	40,562	36,003	42,435
Quick Ratio, Comparison to Industry
International Business Machines Corp.¹	0.96	0.98	0.98	1.13	0.95
Industry, Technology	1.44	1.38	1.34	1.41	1.10

Source: Based on data from International Business Machines Corp. Annual Reports

2012 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 41,707 ÷ 43,625 = 0.96

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	International Business Machines Corp.'s quick ratio improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	10,412	11,922	10,661	12,183	12,741
Marketable securities	717	–	990	1,791	166
Total cash assets	11,129	11,922	11,651	13,974	12,907
Current liabilities	43,625	42,123	40,562	36,003	42,435
Cash Ratio, Comparison to Industry
International Business Machines Corp.¹	0.26	0.28	0.29	0.39	0.30
Industry, Technology	0.93	0.88	0.84	0.89	0.63

Source: Based on data from International Business Machines Corp. Annual Reports

2012 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 11,129 ÷ 43,625 = 0.26

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	International Business Machines Corp.'s cash ratio deteriorated from 2010 to 2011 and from 2011 to 2012.