Current Ratio
since 2005
Calculation
International Business Machines Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 1.04 | = | 34,482) | ÷ | 33,142) |
| Dec 31, 2023 | 0.96 | = | 32,908) | ÷ | 34,122) |
| Dec 31, 2022 | 0.92 | = | 29,118) | ÷ | 31,505) |
| Dec 31, 2021 | 0.88 | = | 29,539) | ÷ | 33,619) |
| Dec 31, 2020 | 0.98 | = | 39,165) | ÷ | 39,869) |
| Dec 31, 2019 | 1.02 | = | 38,420) | ÷ | 37,701) |
| Dec 31, 2018 | 1.29 | = | 49,146) | ÷ | 38,227) |
| Dec 31, 2017 | 1.33 | = | 49,735) | ÷ | 37,363) |
| Dec 31, 2016 | 1.21 | = | 43,888) | ÷ | 36,275) |
| Dec 31, 2015 | 1.24 | = | 42,504) | ÷ | 34,269) |
| Dec 31, 2014 | 1.25 | = | 49,422) | ÷ | 39,600) |
| Dec 31, 2013 | 1.28 | = | 51,350) | ÷ | 40,154) |
| Dec 31, 2012 | 1.13 | = | 49,433) | ÷ | 43,625) |
| Dec 31, 2011 | 1.21 | = | 50,928) | ÷ | 42,123) |
| Dec 31, 2010 | 1.19 | = | 48,116) | ÷ | 40,562) |
| Dec 31, 2009 | 1.36 | = | 48,935) | ÷ | 36,002) |
| Dec 31, 2008 | 1.15 | = | 49,004) | ÷ | 42,435) |
| Dec 31, 2007 | 1.20 | = | 53,177) | ÷ | 44,310) |
| Dec 31, 2006 | 1.11 | = | 44,660) | ÷ | 40,091) |
| Dec 31, 2005 | 1.30 | = | 45,661) | ÷ | 35,152) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of current assets and current liabilities over the period from 2005 to 2024 reveals fluctuations with notable trends impacting the current ratio.
- Current Assets
- Current assets initially increased from approximately 45.7 billion USD in 2005 to peak near 53.2 billion USD in 2007. Following this peak, a gradual decline is observed, with occasional minor recoveries, particularly around 2012 and 2017, before a more pronounced decrease occurs towards the later years. By 2021, current assets fell to roughly 29.5 billion USD, marking a significant reduction compared to earlier levels. A slight recovery is seen from 2022 to 2024, ending in the mid-30 billion USD range.
- Current Liabilities
- Current liabilities rose from 35.2 billion USD in 2005 to a high near 44.3 billion USD in 2007, followed by a moderate decline and relative stabilization between 34 billion and 44 billion USD through the subsequent years. The figures show a gradual decrease particularly from 2019 onwards, reaching near 33.1 billion USD by 2024. The overall trend indicates some volatility but with a general downward trajectory in liabilities during the latter years.
- Current Ratio
- The current ratio, a key liquidity indicator, starts at 1.3 in 2005, declines to roughly 1.11 by 2006, then fluctuates modestly between 1.15 and 1.36 until 2014. Post-2014, the ratio notably declines, dropping below the benchmark of 1.0 in 2019 and 2020, indicating periods where current liabilities exceeded current assets. From 2021 onward, the current ratio shows a gradual recovery, reaching slightly above 1.0 by 2024.
In summary, the data reflects a period of strong liquidity in the mid-2000s, followed by significant challenges around 2019–2021, where the current ratio dipped below 1.0, suggesting potential short-term liquidity constraints. The modest recovery in the most recent years indicates an improvement in managing current assets relative to current liabilities, yet the overall downward trend from peak levels warrants cautious attention to working capital management and liquidity strategy going forward.
Comparison to Competitors
International Business Machines Corp., current ratio, long-term trends, comparison to competitors
| International Business Machines Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 1.04 | 1.10 | 1.07 | 2.93 | 1.76 | 1.62 | 1.29 | 1.27 | 0.72 | 5.96 | 0.89 | 1.09 | 1.10 | 2.44 | 1.97 |
| Dec 31, 2023 | 0.96 | 1.30 | 1.34 | 1.24 | 1.73 | 1.51 | 1.47 | 1.77 | 0.91 | 5.55 | 0.78 | 1.02 | 1.06 | 1.15 | 1.75 |
| Dec 31, 2022 | 0.92 | 1.23 | 1.11 | 1.27 | 1.83 | 1.46 | 1.39 | 1.78 | 1.62 | 5.17 | 0.77 | 1.05 | 1.11 | 1.09 | 1.03 |
| Dec 31, 2021 | 0.88 | 1.25 | 1.25 | 1.77 | 2.65 | 0.99 | 1.94 | 2.08 | 2.30 | 4.34 | 0.91 | 1.23 | 1.05 | 1.16 | 1.12 |
| Dec 31, 2020 | 0.98 | 1.40 | 1.48 | 1.86 | 2.38 | 1.29 | 2.26 | 2.52 | 3.03 | 3.74 | 1.91 | 1.08 | 1.21 | 1.19 | 1.04 |
| Dec 31, 2019 | 1.02 | 1.40 | 0.79 | 1.74 | — | 0.93 | 1.83 | 2.53 | 2.49 | — | 1.78 | 0.95 | 1.03 | 0.99 | 1.11 |
| Dec 31, 2018 | 1.29 | 1.34 | 1.13 | 1.34 | — | 0.80 | 1.14 | 2.90 | 3.96 | — | 1.93 | 0.92 | 1.17 | 0.73 | 1.92 |
| Dec 31, 2017 | 1.33 | 1.23 | 2.05 | 1.53 | — | 0.95 | 0.73 | 2.48 | 3.08 | — | 1.65 | 0.83 | 1.15 | 1.04 | 1.93 |
| Dec 31, 2016 | 1.21 | 1.35 | 2.08 | 1.20 | — | 1.09 | 0.72 | 2.35 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Dec 31, 2015 | 1.24 | 1.36 | 2.18 | 1.80 | — | 1.18 | 1.47 | 2.50 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
| Dec 31, 2014 | 1.25 | 1.46 | 1.85 | 1.33 | — | 0.85 | 1.84 | 2.50 | 3.35 | — | 2.75 | 0.67 | 1.79 | 1.09 | 4.80 |
| Dec 31, 2013 | 1.28 | 1.45 | 2.65 | 1.06 | — | 1.50 | 1.87 | 2.71 | 3.24 | — | 2.57 | 0.69 | 2.43 | 1.18 | 3.47 |
| Dec 31, 2012 | 1.13 | 1.55 | 3.41 | 1.14 | — | 1.24 | 1.20 | 2.60 | 2.60 | — | 3.13 | 0.72 | 1.99 | 0.91 | — |
| Dec 31, 2011 | 1.21 | 1.45 | 3.02 | 1.05 | — | 2.49 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Dec 31, 2010 | 1.19 | 1.46 | 3.01 | 1.26 | — | 2.84 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Dec 31, 2009 | 1.36 | 1.46 | 2.93 | 2.14 | — | 3.86 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Dec 31, 2008 | 1.15 | 1.34 | 3.59 | 1.69 | — | 2.87 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Dec 31, 2007 | 1.20 | 1.14 | 3.02 | 1.95 | — | 0.80 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Dec 31, 2006 | 1.11 | 1.26 | 4.26 | 2.39 | — | 0.77 | 1.79 | 2.18 | 1.73 | — | — | 1.29 | — | 1.03 | — |
| Dec 31, 2005 | 1.30 | 1.37 | 4.18 | 2.11 | — | 2.99 | 1.61 | 2.89 | 1.05 | — | — | 1.36 | — | 1.16 | — |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
International Business Machines Corp., current ratio, long-term trends, comparison to sector (software & services)
| International Business Machines Corp. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 1.04 | 1.19 |
| Dec 31, 2023 | 0.96 | 1.39 |
| Dec 31, 2022 | 0.92 | 1.43 |
| Dec 31, 2021 | 0.88 | 1.67 |
| Dec 31, 2020 | 0.98 | 1.91 |
| Dec 31, 2019 | 1.02 | 1.84 |
| Dec 31, 2018 | 1.29 | 2.22 |
| Dec 31, 2017 | 1.33 | 2.06 |
| Dec 31, 2016 | 1.21 | 2.03 |
| Dec 31, 2015 | 1.24 | 2.15 |
| Dec 31, 2014 | 1.25 | 2.01 |
| Dec 31, 2013 | 1.28 | 2.04 |
| Dec 31, 2012 | 1.13 | 1.84 |
| Dec 31, 2011 | 1.21 | 1.87 |
| Dec 31, 2010 | 1.19 | 1.62 |
| Dec 31, 2009 | 1.36 | 1.63 |
| Dec 31, 2008 | 1.15 | 1.36 |
| Dec 31, 2007 | 1.20 | 1.37 |
| Dec 31, 2006 | 1.11 | 1.52 |
| Dec 31, 2005 | 1.30 | 1.70 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
International Business Machines Corp., current ratio, long-term trends, comparison to industry (information technology)
| International Business Machines Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 1.04 | 1.24 |
| Dec 31, 2023 | 0.96 | 1.41 |
| Dec 31, 2022 | 0.92 | 1.37 |
| Dec 31, 2021 | 0.88 | 1.55 |
| Dec 31, 2020 | 0.98 | 1.71 |
| Dec 31, 2019 | 1.02 | 1.66 |
| Dec 31, 2018 | 1.29 | 1.88 |
| Dec 31, 2017 | 1.33 | 2.04 |
| Dec 31, 2016 | 1.21 | 2.01 |
| Dec 31, 2015 | 1.24 | 2.03 |
| Dec 31, 2014 | 1.25 | 1.97 |
| Dec 31, 2013 | 1.28 | 2.20 |
| Dec 31, 2012 | 1.13 | 2.07 |
| Dec 31, 2011 | 1.21 | 2.11 |
| Dec 31, 2010 | 1.19 | 2.01 |
| Dec 31, 2009 | 1.36 | 2.03 |
| Dec 31, 2008 | 1.15 | 1.80 |
| Dec 31, 2007 | 1.20 | 1.78 |
| Dec 31, 2006 | 1.11 | 1.85 |
| Dec 31, 2005 | 1.30 | 2.01 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).