Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Analysis of Debt
- Aggregate Accruals
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International Business Machines Corp., consolidated income statement
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Revenue and Segment Performance
- The total revenue exhibits a downward trend from 2020 to 2021, decreasing significantly from approximately $73.6 billion to $57.4 billion. Subsequently, it shows a gradual recovery with slight increases over the following years, reaching about $62.8 billion by 2024. Within revenue components, the Services segment sees a sharp decline from 2020 to 2021, falling from $45.0 billion to $29.2 billion, then stabilizes with minor fluctuations around $30 billion afterwards. Sales revenue remains relatively stable in 2020 and 2021, then steadily increases each year through 2024, rising from roughly $27.3 billion to $32.2 billion. Financing revenue decreases steadily over the entire period, dropping from about $1.1 billion to $0.7 billion.
- Costs and Gross Profit
- The costs associated with each segment mirror the revenue trends, with overall costs decreasing sharply from 2020 to 2021, followed by relative stabilization and slight reductions approaching 2024. The cost of services decreases notably in the early period and remains fairly flat thereafter. Sales costs show minor variations but remain relatively consistent. Financing costs consistently decline over time. Overall cost totals decrease from approximately $38 billion in 2020 to $25.9 billion in 2021 and then remain largely stable thereafter. This leads to improvements in gross profit, which drops from $35.6 billion to $31.5 billion in 2021 but then recovers gradually, peaking back at around $35.6 billion by 2024.
- Operating Expenses and Income
- Selling, general and administrative expenses reduce markedly from 2020 to 2021, followed by slight fluctuations and a moderate increase through 2024, ending higher than in 2021 but still below 2020 levels. Research, development, and engineering expenses slightly increase over time, from about $6.3 billion to $7.5 billion, indicating ongoing investment in innovation. Intellectual property and custom development income steadily rises throughout the period, more than doubling from about $626 million in 2020 to nearly $1 billion in 2024. Operating income declines slightly in 2021 before consistently improving to approximately $9.4 billion in 2023, remaining flat into 2024.
- Other Income and Expenses
- Gains and losses on foreign currency transactions and derivative instruments fluctuate significantly, with foreign currency transactions showing gains and losses across years and derivative instruments mostly incurring losses except for a minor positive in 2023. Interest income increases markedly from $105 million in 2020 to $747 million in 2024, demonstrating enhanced returns or investments. Net gains/losses from securities and investments are volatile, with positive values in some years but a notable loss in 2022. Retirement-related costs spike sharply negative in 2022 but improve thereafter. Other income/expense shifts between moderate losses and gains, with a notable swing to a large loss in 2022 and a return to gains in 2023, followed by losses again in 2024. Interest expense increases steadily from $1.3 billion to $1.7 billion.
- Profitability and Net Income
- Income from continuing operations before income taxes declines sharply in 2022, dropping from $4.9 billion to $1.2 billion, then recovers strongly in 2023 to $8.7 billion but falls again to $5.8 billion in 2024. Income tax provisions vary, with positive tax benefits in some years and provisions in others, adding volatility to net profitability. Income from continuing operations follows a similar pattern, with a steep drop in 2022, partial recovery in subsequent years, and a moderate decrease by 2024. Net income displays pronounced volatility, with a steep decline in 2022 and recovery in 2023 followed by a slight drop in 2024. Net income attributable to the company aligns closely with overall net income trends.