Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
International Business Machines Corp., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | |
| Quick ratio | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | |
| Cash ratio | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | International Business Machines Corp. current ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | International Business Machines Corp. quick ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | International Business Machines Corp. cash ratio improved from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
International Business Machines Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 32,908) | 29,118) | 29,539) | 39,165) | 38,420) | |
| Current liabilities | 34,122) | 31,505) | 33,619) | 39,869) | 37,701) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | |
| Adobe Inc. | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | |
| Intuit Inc. | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | |
| Microsoft Corp. | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | |
| Oracle Corp. | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | |
| Palo Alto Networks Inc. | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | |
| Salesforce Inc. | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | |
| ServiceNow Inc. | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | |
| Synopsys Inc. | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | |
| Current Ratio, Sector | ||||||
| Software & Services | 1.37 | 1.42 | 1.67 | 1.92 | 1.85 | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 32,908 ÷ 34,122 = 0.96
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | International Business Machines Corp. current ratio improved from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
International Business Machines Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 13,068) | 7,886) | 6,650) | 13,212) | 8,172) | |
| Restricted cash | 21) | 103) | 307) | 463) | 141) | |
| Marketable securities | 373) | 852) | 600) | 600) | 696) | |
| Notes and accounts receivable, trade, net of allowances | 7,214) | 6,541) | 6,754) | 7,132) | 7,870) | |
| Short-term financing receivables, held for investment, net of allowances | 6,102) | 6,851) | 7,221) | 10,892) | 14,192) | |
| Other accounts receivable, net of allowances | 640) | 817) | 1,002) | 714) | 1,733) | |
| Total quick assets | 27,418) | 23,050) | 22,534) | 33,013) | 32,804) | |
| Current liabilities | 34,122) | 31,505) | 33,619) | 39,869) | 37,701) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | |
| Adobe Inc. | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | |
| Intuit Inc. | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | |
| Microsoft Corp. | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | |
| Oracle Corp. | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | |
| Palo Alto Networks Inc. | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | |
| Salesforce Inc. | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | |
| ServiceNow Inc. | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | |
| Synopsys Inc. | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | |
| Quick Ratio, Sector | ||||||
| Software & Services | 1.19 | 1.25 | 1.51 | 1.76 | 1.69 | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 27,418 ÷ 34,122 = 0.80
2 Click competitor name to see calculations.
| Liquidity 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. quick ratio improved from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
International Business Machines Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 13,068) | 7,886) | 6,650) | 13,212) | 8,172) | |
| Restricted cash | 21) | 103) | 307) | 463) | 141) | |
| Marketable securities | 373) | 852) | 600) | 600) | 696) | |
| Total cash assets | 13,462) | 8,841) | 7,557) | 14,275) | 9,009) | |
| Current liabilities | 34,122) | 31,505) | 33,619) | 39,869) | 37,701) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | |
| Adobe Inc. | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | |
| Intuit Inc. | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | |
| Microsoft Corp. | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | |
| Oracle Corp. | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | |
| Palo Alto Networks Inc. | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | |
| Salesforce Inc. | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | |
| ServiceNow Inc. | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | |
| Synopsys Inc. | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | |
| Cash Ratio, Sector | ||||||
| Software & Services | 0.75 | 0.81 | 1.10 | 1.33 | 1.23 | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 13,462 ÷ 34,122 = 0.39
2 Click competitor name to see calculations.
| Liquidity 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. cash ratio improved from 2021 to 2022 and from 2022 to 2023. |