International Business Machines Corp. (NYSE:IBM)

The composition of assets exhibited several notable shifts over the observed period, spanning from March 2021 to December 2025. Current assets demonstrated fluctuation, while non-current assets generally comprised a larger and more stable portion of the total asset base. Specific asset categories within these broader classifications experienced distinct trends worthy of examination.

Liquidity and Cash Position

Cash and cash equivalents as a percentage of total assets showed an initial decline from 7.09% in March 2021 to a low of 5.01% in June 2021, followed by a period of relative stability before increasing significantly to 10.65% in March 2024. This was then followed by a decrease to 8.95% by December 2025. Restricted cash remained a relatively small portion of total assets, with some volatility, peaking at 0.24% in September 2021 and reaching 1.69% in June 2024 before declining substantially. Marketable securities experienced a significant increase in the latter half of 2023, peaking at 6.03% in March 2023, before decreasing to 0.55% by December 2025.

Receivables and Short-Term Financing

Notes and accounts receivable, trade, net of allowances, remained relatively stable, fluctuating between approximately 4.12% and 5.33% of total assets throughout the period. Short-term financing receivables, held for investment, exhibited a similar pattern, generally ranging between 3.89% and 5.94%. A smaller component, short-term financing receivables held for sale, appeared in June 2021 and then fluctuated between 0.31% and 0.74% before decreasing to 0.74% by December 2025. Other accounts receivable remained relatively consistent, hovering around 0.5% to 0.8% of total assets.

Inventory and Deferred Costs

Inventory, encompassing finished goods, work in process, and raw materials, demonstrated a gradual decline over the period, decreasing from 1.23% in March 2021 to 0.80% in December 2025. Deferred costs initially decreased from 1.50% to 0.83% before fluctuating and increasing to 0.71% by December 2025. Prepaid expenses and other current assets showed an initial increase, peaking at 2.68% in June 2022, before decreasing to 1.67% by December 2025.

Long-Term Assets

Property, plant, and equipment, net of accumulated depreciation, represented a significant portion of total assets, fluctuating between 3.94% and 6.42%. Operating right-of-use assets, net, remained relatively stable, ranging between 2.01% and 3.02%. Long-term financing receivables, net of allowances, increased from 3.98% in March 2021 to 5.08% in December 2023 before decreasing to 4.26% by December 2025. Prepaid pension assets showed a decline from 7.50% in March 2021 to 4.97% in December 2025. Deferred taxes remained relatively stable, fluctuating between 4.77% and 6.22%. Goodwill consistently represented the largest single asset component, ranging between 41.99% and 46.08%. Intangible assets, net, also constituted a substantial portion, fluctuating between 7.50% and 9.22%. Investments and sundry assets remained a small percentage of total assets, fluctuating between 1.20% and 1.49%.

Overall, the asset structure demonstrated a shift towards a greater proportion of long-term assets, particularly goodwill and intangible assets, throughout the observed period. Current assets experienced more volatility, with notable fluctuations in cash and marketable securities. The gradual decline in inventory suggests potential improvements in inventory management or changes in business operations.