Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Long-term Activity Ratios (Summary)

International Business Machines Corp., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net fixed asset turnover 11.25 11.35 10.07 7.33 7.71
Net fixed asset turnover (including operating lease, right-of-use asset) 7.09 7.37 6.43 5.00 5.14
Total asset turnover 0.46 0.48 0.43 0.47 0.51
Equity turnover 2.75 2.76 3.03 3.57 3.70

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).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. International Business Machines Corp. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). International Business Machines Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. International Business Machines Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. International Business Machines Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Fixed Asset Turnover

International Business Machines Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 61,860 60,530 57,350 73,620 77,147
Property, plant and equipment, net 5,501 5,334 5,694 10,040 10,010
Long-term Activity Ratio
Net fixed asset turnover1 11.25 11.35 10.07 7.33 7.71
Benchmarks
Net Fixed Asset Turnover, Competitors2
Accenture PLC 41.90 37.12 30.83 28.68 31.06
Adobe Inc. 9.56 9.23 9.44 8.48 8.64
Intuit Inc. 14.83 14.33 12.35 10.46 8.70
Microsoft Corp. 2.22 2.66 2.81 3.24 3.45
Oracle Corp. 2.93 4.37 5.74 6.26 6.32
Palo Alto Networks Inc. 19.44 15.38 13.37 9.79 9.80
Salesforce Inc. 8.47 9.41 8.64 7.20 6.48
ServiceNow Inc. 6.61 6.88 7.70 6.85 7.39
Synopsys Inc. 10.48 10.51 8.90 7.62 7.82
Net Fixed Asset Turnover, Sector
Software & Services 3.69 4.44 4.69 5.13 5.50
Net Fixed Asset Turnover, Industry
Information Technology 3.51 4.14 4.44 4.23 4.27

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
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 61,860 ÷ 5,501 = 11.25

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. International Business Machines Corp. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

International Business Machines Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 61,860 60,530 57,350 73,620 77,147
 
Property, plant and equipment, net 5,501 5,334 5,694 10,040 10,010
Operating right-of-use assets, net 3,220 2,878 3,222 4,686 4,996
Property, plant and equipment, net (including operating lease, right-of-use asset) 8,721 8,212 8,916 14,726 15,006
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 7.09 7.37 6.43 5.00 5.14
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Accenture PLC 15.38 13.17 10.48 9.37 31.06
Adobe Inc. 8.13 7.61 7.46 6.42 8.64
Intuit Inc. 9.99 8.86 8.30 8.00 8.70
Microsoft Corp. 1.93 2.26 2.37 2.70 2.87
Oracle Corp. 2.31 3.21 4.20 4.74 6.32
Palo Alto Networks Inc. 11.16 9.17 7.32 5.62 9.80
Salesforce Inc. 4.76 4.65 3.75 3.16 6.48
ServiceNow Inc. 4.33 4.18 4.34 4.06 3.98
Synopsys Inc. 5.19 4.87 4.35 3.88 7.82
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Software & Services 2.99 3.46 3.56 3.81 4.52
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology 3.08 3.59 3.79 3.60 3.99

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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 61,860 ÷ 8,721 = 7.09

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). International Business Machines Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Total Asset Turnover

International Business Machines Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 61,860 60,530 57,350 73,620 77,147
Total assets 135,241 127,243 132,001 155,971 152,186
Long-term Activity Ratio
Total asset turnover1 0.46 0.48 0.43 0.47 0.51
Benchmarks
Total Asset Turnover, Competitors2
Accenture PLC 1.25 1.30 1.17 1.20 1.45
Adobe Inc. 0.65 0.65 0.58 0.53 0.54
Intuit Inc. 0.52 0.46 0.62 0.70 1.08
Microsoft Corp. 0.51 0.54 0.50 0.47 0.44
Oracle Corp. 0.37 0.39 0.31 0.34 0.36
Palo Alto Networks Inc. 0.48 0.45 0.42 0.38 0.44
Salesforce Inc. 0.32 0.28 0.32 0.31 0.43
ServiceNow Inc. 0.52 0.54 0.55 0.52 0.57
Synopsys Inc. 0.57 0.54 0.48 0.46 0.52
Total Asset Turnover, Sector
Software & Services 0.51 0.52 0.48 0.48 0.50
Total Asset Turnover, Industry
Information Technology 0.59 0.63 0.61 0.57 0.58

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
Total asset turnover = Revenue ÷ Total assets
= 61,860 ÷ 135,241 = 0.46

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. International Business Machines Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Equity Turnover

International Business Machines Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenue 61,860 60,530 57,350 73,620 77,147
Total IBM stockholders’ equity 22,533 21,944 18,901 20,597 20,841
Long-term Activity Ratio
Equity turnover1 2.75 2.76 3.03 3.57 3.70
Benchmarks
Equity Turnover, Competitors2
Accenture PLC 2.50 2.79 2.59 2.61 3.00
Adobe Inc. 1.18 1.25 1.07 0.97 1.06
Intuit Inc. 0.83 0.77 0.98 1.50 1.81
Microsoft Corp. 1.03 1.19 1.18 1.21 1.23
Oracle Corp. 46.56 7.73 3.24 1.81
Palo Alto Networks Inc. 3.94 26.20 6.71 3.09 1.83
Salesforce Inc. 0.54 0.46 0.51 0.50 0.85
ServiceNow Inc. 1.18 1.44 1.60 1.59 1.63
Synopsys Inc. 0.95 0.92 0.79 0.75 0.82
Equity Turnover, Sector
Software & Services 1.31 1.44 1.44 1.52 1.66
Equity Turnover, Industry
Information Technology 1.44 1.61 1.67 1.65 1.65

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
Equity turnover = Revenue ÷ Total IBM stockholders’ equity
= 61,860 ÷ 22,533 = 2.75

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. International Business Machines Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.