International Business Machines Corp. (NYSE:IBM)

Current Assets

The current assets exhibited a decline from 39,165 million US dollars at the end of 2020 to 29,539 million US dollars by the end of 2021, marking a significant decrease. This downward trend continued slightly into 2022 with values around 29,118 million US dollars. However, from 2022 onwards, a recovery trend is observable as current assets increased to 32,908 million US dollars in 2023 and further to 34,482 million US dollars in 2024. This suggests a rebound in liquidity or short-term resource availability after a period of contraction.

Adjusted Current Assets

The adjusted current assets closely follow the trend of the reported current assets but consistently report slightly higher values each year. Beginning at 39,544 million US dollars at the end of 2020, there was a notable drop to 29,781 million US dollars in 2021, mirroring the pattern in current assets. The value slightly decreased further to 29,440 million US dollars in 2022, then rose to 33,209 million and 34,627 million US dollars in 2023 and 2024, respectively. The parallel trends in adjusted current assets reinforce the observed recovery in the company's short-term asset base, with the adjustment possibly reflecting additional considerations that marginally increase the asset base.

The annual financial data reveals several trends regarding the total and adjusted total assets over the five-year period from 2020 to 2024.

Total Assets

The total assets decreased notably from US$155,971 million in 2020 to US$132,001 million in 2021, indicating a significant contraction within the year. This downward trend continued modestly in 2022, with total assets declining further to US$127,243 million. However, in 2023, a reversal in the trend is observed as total assets increased to US$135,241 million, followed by a further slight rise to US$137,175 million in 2024. Overall, total assets demonstrate an initial decline followed by a gradual recovery in the latter two years.

Adjusted Total Assets

The adjusted total assets exhibit a similar pattern to total assets but remain consistently lower throughout the period, indicating adjustments that reduce asset values. Specifically, adjusted total assets fell from US$147,109 million in 2020 to US$124,873 million in 2021, continuing a declining trend to US$121,309 million in 2022. Subsequently, like total assets, adjusted assets increase to US$128,886 million in 2023 and somewhat further to US$130,342 million in 2024. This pattern suggests that while the adjusted asset base contracted initially, there was a recovery phase mirroring the total assets trend.

In summary, the data indicates a period of asset reduction in the years 2021 and 2022, followed by an asset growth phase in 2023 and 2024. Both total and adjusted assets follow a similar trajectory, with adjusted figures remaining lower but reflecting consistent patterns. These changes may reflect strategic shifts, asset revaluations, or operational adjustments impacting the asset base over the period under consideration.

The analysis of the current liabilities over the five-year period reveals a general downward trend with some fluctuations. The current liabilities decreased from US$39,869 million as of December 31, 2020, to US$33,142 million by December 31, 2024, indicating a modest reduction in short-term obligations.

Adjusted current liabilities, which may exclude certain items for a clearer operational perspective, also exhibited a steady decline. Beginning at US$26,749 million at the end of 2020, adjusted current liabilities consistently fell to US$19,098 million by the end of 2024. This sustained decrease suggests improved management of more immediate financial obligations or adjustments reflecting a more precise liability assessment over time.

Current Liabilities

Decreased overall by approximately 16.9% from 2020 to 2024, with a notable dip in 2022 followed by a slight increase in 2023 and a minor decline in 2024.

Adjusted Current Liabilities

Showed a more pronounced decrease of about 28.6% across the five years, consistently declining each year except a slight rise in 2023 before concluding with the lowest figure in 2024.

In summary, the decreasing trend in both reported and adjusted current liabilities points to a strengthening of the company's short-term financial position or potentially improved liquidity management over the period. The smaller fluctuations in total current liabilities, compared to the steadier reduction in adjusted current liabilities, may be due to accounting adjustments or reclassifications impacting reported figures.

The analysis of the liabilities over the five-year period reveals a general downward trend in both total liabilities and adjusted total liabilities, with some fluctuations noted.

Total liabilities

Total liabilities decreased significantly from 135,244 million USD at the end of 2020 to 113,005 million USD in 2021, indicating a substantial reduction in obligations. The downward trend continued through 2022, reaching 105,222 million USD, representing the lowest point over the observed period. However, in 2023, total liabilities increased to 112,628 million USD, suggesting a reversal of the previous downward trend, before slightly decreasing again to 109,783 million USD in 2024.

Adjusted total liabilities

Adjusted total liabilities also showed a consistent decline from 112,130 million USD in 2020 to 92,528 million USD in 2021, continuing downward to 87,048 million USD in 2022. Similar to total liabilities, there was an increase in adjusted total liabilities in 2023 to 94,249 million USD, followed by a decrease to 91,275 million USD in 2024. This pattern indicates a general effort to reduce adjusted liabilities with some fluctuations.

Overall, the observed data suggests active management of liabilities, with a notable reduction in both categories after 2020, though the increases in 2023 indicate potential changes in financial strategy, market conditions, or investment activities affecting the company’s liabilities profile during that year. The slight decrease in 2024 may suggest a return to liability reduction or stabilization efforts.

Total IBM stockholders’ equity

The total stockholders’ equity exhibited a slight decline from 20,597 million US dollars at the end of 2020 to 18,901 million US dollars in 2021. This was followed by a recovery and steady increase over the subsequent years, reaching 21,944 million in 2022 and 22,533 million in 2023. A significant rise is observed in 2024, where the equity amount increased to 27,307 million US dollars. This indicates an overall positive equity growth trend after an initial dip.

Adjusted total equity

Adjusted total equity started at a value of 34,979 million US dollars at the end of 2020, then gradually decreased to 32,346 million in 2021. After that, it resumed an upward trajectory, growing steadily each year to reach 34,261 million in 2022 and slightly more at 34,637 million in 2023. By 2024, adjusted total equity increased markedly to 39,068 million US dollars. This steady increase, particularly the pronounced rise in 2024, suggests strengthening of the company's financial position in adjusted terms over the period analyzed.

Comparative insights

Both total IBM stockholders’ equity and adjusted total equity demonstrate initial contraction in 2021, followed by a recovery and growth pattern through to 2024. Adjusted total equity values are consistently higher than the unadjusted total stockholders’ equity figures, indicating inclusion of additional components or adjustments that enhance the equity valuation. The sharper increase in the most recent reported year for both measures suggests improving capital structure or retained earnings accumulation, reflecting enhanced shareholder value.

Total Reported Debt

The total reported debt showed a decreasing trend from 61,538 million USD at the end of 2020 to 50,949 million USD in 2022. After 2022, it increased to 56,547 million USD in 2023, followed by a slight decline to 54,973 million USD in 2024. This pattern indicates some volatility but an overall reduction compared to the 2020 level.

Total IBM Stockholders’ Equity

Stockholders' equity declined from 20,597 million USD in 2020 to 18,901 million USD in 2021. From 2021 onwards, equity consistently increased each year, reaching 27,307 million USD by the end of 2024. This reflects growing shareholder value from 2021 onwards.

Total Reported Capital

The total reported capital declined sharply in 2021 to 70,605 million USD from 82,135 million USD in 2020. This was followed by a steady recovery and gradual increase through 2024, reaching 82,280 million USD, which slightly exceeded the initial 2020 figure. This suggests rebuilding of capital after the 2021 dip.

Adjusted Total Debt

Adjusted total debt closely mirrored the reported debt's trajectory, decreasing from 66,469 million USD in 2020 to 54,013 million USD in 2022, then rising again to 59,935 million USD in 2023 before slightly declining to 58,396 million USD in 2024. The adjusted figures are consistently higher than reported debt, indicating additional liabilities considered in the adjusted measure.

Adjusted Total Equity

The adjusted total equity decreased from 34,979 million USD in 2020 to 32,346 million USD in 2021, then demonstrated a steady increase each year, reaching 39,068 million USD in 2024. The adjusted equity amounts are significantly higher than the reported equity, suggesting recognition of other comprehensive income or adjustments in equity components.

Adjusted Total Capital

Adjusted total capital followed a declining trend from 101,448 million USD in 2020 to 87,486 million USD in 2021. Subsequently, it showed consistent recovery and growth through 2024, attaining 97,464 million USD. This indicates an overall strengthening of the company’s adjusted capital base over the analyzed period, albeit not yet reaching the 2020 peak at 2024.

The revenue of the company exhibited a fluctuating trend over the five-year period. Starting at 73,620 million US dollars in 2020, it experienced a notable decline in 2021, dropping to 57,350 million US dollars. Following this decline, the revenue showed a gradual recovery, increasing to 60,530 million US dollars in 2022, 61,860 million US dollars in 2023, and reaching 62,753 million US dollars in 2024. However, the revenue in 2024 remained substantially lower than the level observed in 2020.

The adjusted revenue followed a somewhat similar pattern but with some differences. The adjusted revenue started slightly higher than the reported revenue at 74,877 million US dollars in 2020. It then decreased sharply in 2021 to 57,707 million US dollars, mirroring the decline seen in the reported revenue. In 2022, the adjusted revenue declined further to 59,966 million US dollars, contrasting with the slight increase in the reported revenue for the same year. From 2022 onwards, the adjusted revenue increased to 63,313 million US dollars in 2023, showing a more robust growth compared to the reported revenue. However, in 2024, the adjusted revenue slightly declined to 63,298 million US dollars, while the reported revenue continued its slow upward trend.

Overall, both revenue and adjusted revenue demonstrate a significant decrease between 2020 and 2021, followed by a moderate recovery phase. The adjusted revenue appears more volatile, with a sharper decline and a stronger rebound, but also a slight dip in the final year. The data suggests an initial period of financial challenge or transformation, with subsequent stabilization and growth efforts. The slight divergence between reported and adjusted revenues in the later years might indicate adjustments for one-time or exceptional items that impact the reported figures differently than the adjusted ones.

The financial data demonstrates fluctuations in net income attributable to the company over the five-year period. Net income increased modestly from 2020 to 2021, followed by a significant decline in 2022. However, this was succeeded by a pronounced recovery in 2023, with the net income reaching its highest level in the observed period, before experiencing a moderate decrease in 2024.

Adjusted net income exhibits a different pattern, starting at a lower base compared to net income in 2020 but showing a strong increase in 2021, more than tripling from the previous year. This is followed by a decline in 2022, though the drop is less severe relative to the net income figure. From 2022 onwards, adjusted net income increases continuously in 2023 and 2024, reaching its peak in 2024.

Net income attributable to the company:

Experienced a moderate increase between 2020 and 2021.

Saw a sharp decrease in 2022, falling well below prior levels.

Recovered strongly in 2023, achieving the highest value recorded in the period.

Declined somewhat in 2024 but remained above several previous years.

Adjusted net income:

Increased substantially from 2020 to 2021, surpassing the net income trends in that year.

Declined in 2022 but still maintained a higher level than in 2020.

Demonstrated consistent growth through 2023 and 2024, reaching a peak in the final year.

Overall, while net income shows greater volatility with a sharp dip and recovery, adjusted net income indicates a more stable upward trajectory after 2021. This suggests that adjustments made to net income may be smoothing out the effects of non-recurring or extraordinary items, portraying a clearer picture of underlying earnings strength in the later years.