Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

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Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

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International Business Machines Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Taxes
Short-term debt
Accounts payable
Compensation and benefits
Deferred income
Current operating lease liabilities
Other accrued expenses and liabilities
Current liabilities
Long-term debt, excluding current maturities
Retirement and nonpension postretirement benefit obligations
Deferred income
Noncurrent operating lease liabilities
Income tax reserves
Deferred taxes
Excess Savings Plan
Disability benefits
Derivative liabilities
Workforce reductions
Environmental accruals
Other
Other liabilities
Noncurrent liabilities
Total liabilities
Common stock, par value $.20 per share, and additional paid-in capital
Retained earnings
Treasury stock, at cost
Accumulated other comprehensive loss
Total IBM stockholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity

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 liabilities and stockholders’ equity experienced notable shifts between 2021 and 2025. Overall, the proportion of total liabilities decreased while the proportion of total equity increased over the period. A detailed examination reveals specific trends within each category.

Total Liabilities
Total liabilities as a percentage of total liabilities and equity decreased consistently from 85.61% in 2021 to 78.44% in 2025. This indicates a declining reliance on debt financing relative to equity.
Current Liabilities
Current liabilities remained relatively stable, fluctuating between 24.16% and 25.47% of the total. While there were minor variations year-to-year, no significant upward or downward trend was apparent. Accounts payable and compensation and benefits exhibited modest increases within this category.
Noncurrent Liabilities
Noncurrent liabilities demonstrated a more pronounced decline, moving from 60.14% in 2021 to 52.99% in 2025. This decrease was primarily driven by reductions in long-term debt, retirement benefit obligations, and income tax reserves. The proportion of noncurrent operating lease liabilities remained relatively consistent.
Debt Levels
Both short-term and long-term debt decreased as a percentage of the total. Short-term debt fell from 5.14% to 4.23%, while long-term debt decreased from 34.03% to 36.11%. This suggests a deliberate effort to reduce overall debt exposure.
Retirement and Postretirement Benefits
Retirement and nonpension postretirement benefit obligations experienced a substantial decrease, falling from 10.94% in 2021 to 5.94% in 2025. This reduction likely reflects changes in pension plan structures or benefit accruals.
Tax Liabilities
Taxes and deferred taxes both showed a decreasing trend. Taxes decreased from 1.73% to 1.55%, and deferred taxes decreased significantly from 3.00% to 0.51%. This could be attributed to changes in tax regulations or improved tax planning strategies.
Stockholders’ Equity
Total stockholders’ equity increased as a percentage of the total, rising from 14.39% in 2021 to 21.56% in 2025. This increase was primarily driven by changes in retained earnings and treasury stock. Common stock and additional paid-in capital remained relatively stable.
Treasury Stock
The proportion of treasury stock exhibited a significant decrease, moving from -128.33% in 2021 to -112.33% in 2025. This indicates a reduction in the amount of shares repurchased by the company.
Retained Earnings
Retained earnings decreased from 116.82% in 2021 to 102.48% in 2025, although remaining the largest component of equity. This suggests a potential distribution of earnings to shareholders or increased investment in operations.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss decreased in absolute value, moving from -17.60% to -10.35%. This suggests a reduction in unrealized losses or other comprehensive income items.

In summary, the period witnessed a shift towards a more equity-focused capital structure, characterized by decreasing debt levels and increasing retained earnings. Reductions in retirement obligations and tax liabilities also contributed to the changing financial profile.