Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Common-Size Balance Sheet: Assets 

International Business Machines Corp., common-size consolidated balance sheet: assets

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash and cash equivalents 8.95 10.17 9.66 6.20 5.04
Restricted cash 0.04 0.16 0.02 0.08 0.23
Marketable securities 0.55 0.47 0.28 0.67 0.45
Notes and accounts receivable, trade, net of allowances 5.34 4.96 5.33 5.14 5.12
Short-term financing receivables, held for investment, net of allowances 4.84 4.56 4.51 5.38 5.47
Short-term financing receivables, held for sale 0.74 0.66 0.51 0.74 0.60
Other accounts receivable, net of allowances 0.69 0.69 0.47 0.64 0.76
Inventory 0.80 0.94 0.86 1.22 1.25
Deferred costs 0.71 0.70 0.74 0.76 0.83
Prepaid expenses and other current assets 1.67 1.84 1.95 2.05 2.63
Current assets 24.32% 25.14% 24.33% 22.88% 22.38%
Property, plant and equipment, net 3.88 4.18 4.07 4.19 4.31
Operating right-of-use assets, net 2.06 2.33 2.38 2.26 2.44
Long-term financing receivables, net of allowances 5.08 3.90 4.26 4.56 4.11
Prepaid pension assets 4.97 5.46 5.55 6.47 7.46
Deferred costs 0.54 0.57 0.62 0.68 0.70
Deferred taxes 5.67 5.09 4.92 4.92 5.58
Goodwill 44.59 44.25 44.50 43.97 42.15
Intangible assets, net 7.50 7.77 8.16 8.79 9.48
Investments and sundry assets 1.39 1.30 1.20 1.27 1.38
Noncurrent assets 75.68% 74.86% 75.67% 77.12% 77.62%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The composition of assets exhibited several notable shifts between 2021 and 2025. Current assets as a percentage of total assets generally increased over the period, peaking in 2024 before experiencing a slight decline in 2025. Conversely, noncurrent assets decreased as a percentage of total assets over the five-year period, though with some fluctuation, ending slightly higher in 2025 than in 2023.

Liquidity and Short-Term Assets
Cash and cash equivalents demonstrated a significant increase from 5.04% of total assets in 2021 to a high of 10.17% in 2024, before decreasing to 8.95% in 2025. Restricted cash decreased substantially from 0.23% to 0.04% over the same period. Marketable securities showed some volatility, increasing initially but declining to 0.28% in 2023 before rising again to 0.55% in 2025. Accounts receivable remained relatively stable, fluctuating between 5.12% and 5.34% of total assets. Short-term financing receivables experienced a decrease from 5.47% to 4.84%, while short-term financing receivables held for sale showed a slight increase from 0.60% to 0.74%. Prepaid expenses and other current assets consistently decreased as a percentage of total assets, falling from 2.63% to 1.67%.
Long-Term Assets
Property, plant, and equipment, net, decreased slightly from 4.31% to 3.88% of total assets. Operating right-of-use assets also showed a gradual decline, from 2.44% to 2.06%. Long-term financing receivables increased from 4.11% to 5.08% in 2025. Prepaid pension assets experienced a more substantial decrease, falling from 7.46% to 4.97%. Deferred taxes showed an initial decrease followed by an increase, ending at 5.67% in 2025, higher than the 5.58% recorded in 2021. Goodwill remained the largest component of assets, consistently representing over 40% of the total, with a slight increase from 42.15% to 44.59%. Intangible assets, net, decreased from 9.48% to 7.50% over the period. Investments and sundry assets remained relatively stable, fluctuating between 1.20% and 1.39%.

The observed trends suggest a potential shift in asset allocation, with a growing proportion of assets held in more liquid forms (cash and equivalents) and a decreasing proportion in long-term assets like prepaid pension assets and intangible assets. The consistent high percentage of goodwill indicates its continued significance to the company’s asset base.

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