Debt to Equity
since 2005
Calculation
International Business Machines Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total IBM stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 2.01 | = | 54,973) | ÷ | 27,307) |
| Dec 31, 2023 | 2.51 | = | 56,547) | ÷ | 22,533) |
| Dec 31, 2022 | 2.32 | = | 50,949) | ÷ | 21,944) |
| Dec 31, 2021 | 2.74 | = | 51,704) | ÷ | 18,901) |
| Dec 31, 2020 | 2.99 | = | 61,538) | ÷ | 20,597) |
| Dec 31, 2019 | 3.02 | = | 62,899) | ÷ | 20,841) |
| Dec 31, 2018 | 2.73 | = | 45,812) | ÷ | 16,796) |
| Dec 31, 2017 | 2.66 | = | 46,824) | ÷ | 17,594) |
| Dec 31, 2016 | 2.31 | = | 42,168) | ÷ | 18,246) |
| Dec 31, 2015 | 2.80 | = | 39,889) | ÷ | 14,262) |
| Dec 31, 2014 | 3.44 | = | 40,804) | ÷ | 11,868) |
| Dec 31, 2013 | 1.74 | = | 39,718) | ÷ | 22,792) |
| Dec 31, 2012 | 1.76 | = | 33,269) | ÷ | 18,860) |
| Dec 31, 2011 | 1.56 | = | 31,320) | ÷ | 20,138) |
| Dec 31, 2010 | 1.24 | = | 28,624) | ÷ | 23,046) |
| Dec 31, 2009 | 1.15 | = | 26,100) | ÷ | 22,637) |
| Dec 31, 2008 | 2.52 | = | 33,925) | ÷ | 13,465) |
| Dec 31, 2007 | 1.24 | = | 35,274) | ÷ | 28,470) |
| Dec 31, 2006 | 0.80 | = | 22,682) | ÷ | 28,506) |
| Dec 31, 2005 | 0.68 | = | 22,641) | ÷ | 33,098) |
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
- Total Debt
- The total debt exhibits an overall increasing trend from 2005 through 2024, with some fluctuations. Initially, debt rose steadily from approximately $22.6 billion in 2005 to about $39.7 billion in 2013. After a minor decline and slight fluctuations between 2014 and 2018, debt levels surged significantly, peaking close to $62.9 billion in 2019. Subsequently, a downward adjustment occurred until 2022, followed by another increase near $56.5 billion in 2023 and a slight decrease to $54.9 billion in 2024. This pattern suggests periods of increased leverage, especially notable in the late 2010s.
- Total IBM Stockholders’ Equity
- Stockholders’ equity demonstrates a more erratic trajectory over the same period. The figure decreased sharply from roughly $33.1 billion in 2005 to around $13.5 billion in 2008, showing a significant downturn in equity base. Following this, moderate recovery and fluctuations occurred until 2013, where equity hit a low near $11.9 billion. Subsequently, there was a gradual upward movement with some volatility, reaching approximately $27.3 billion by 2024. Despite recovering from trough levels, equity remains below the 2005 peak, indicating a contracted equity base over the long term.
- Debt to Equity Ratio
- The debt to equity ratio shows notable volatility and an overall upward trend, indicative of increasing financial leverage. Starting below 1.0 in 2005, the ratio escalated dramatically to 2.52 by 2008, coinciding with the sharp equity decline and rising debt. From 2009 onward, the ratio remained elevated, fluctuating between roughly 1.15 and a peak around 3.44 in 2013. Afterward, it stabilized somewhat in the range of 2.0 to 2.7 through the later years, ultimately declining slightly to about 2.01 by 2024. This pattern reflects persistent leverage intensification relative to equity, with a modest recent reduction.
- Summary Insights
- The data reveals a long-term increase in leverage driven by rising debt combined with a declining and moderately recovering equity base. This has resulted in sustained pressure on the capital structure, as evidenced by the elevated debt to equity ratio particularly in the years following 2008. The sharp equity drop during the financial crisis period in 2008 significantly influenced the debt to equity metric, amplifying the perceived financial risk. Although equity improved after 2013, debt levels remained high, maintaining leverage above historical norms. Recent years show a slight deleveraging trend, possibly reflecting strategic efforts to optimize balance sheet risk.
Comparison to Competitors
International Business Machines Corp., debt to equity, 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 | 2.01 | 0.04 | 0.40 | 0.53 | 0.32 | — | 0.33 | 0.29 | 9.98 | 0.00 | 0.19 | 0.17 | 0.15 | 0.00 | 0.37 |
| Dec 31, 2023 | 2.51 | 0.01 | 0.22 | 0.19 | 0.51 | — | 0.35 | 0.31 | 84.33 | 0.00 | 1.14 | 0.20 | 0.20 | 0.00 | 0.53 |
| Dec 31, 2022 | 2.32 | 0.00 | 0.29 | 0.27 | 0.72 | — | 0.42 | 0.39 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Dec 31, 2021 | 2.74 | 0.00 | 0.28 | 0.13 | 0.85 | — | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Dec 31, 2020 | 2.99 | 0.00 | 0.31 | 0.14 | 0.00 | 2.52 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Dec 31, 2019 | 3.02 | 0.00 | 0.39 | 0.16 | — | 2.85 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Dec 31, 2018 | 2.73 | 0.00 | 0.44 | 0.35 | — | 2.90 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Dec 31, 2017 | 2.66 | 0.00 | 0.22 | 0.74 | — | 1.42 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Dec 31, 2016 | 2.31 | 0.00 | 0.26 | 0.93 | — | 1.28 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Dec 31, 2015 | 2.80 | 0.00 | 0.27 | 0.25 | — | 1.39 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Dec 31, 2014 | 3.44 | 0.00 | 0.22 | 0.52 | — | 1.20 | 0.16 | 0.25 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Dec 31, 2013 | 1.74 | 0.01 | 0.23 | 0.28 | — | 0.89 | 0.14 | 0.20 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Dec 31, 2012 | 1.76 | 0.00 | 0.23 | 0.49 | — | 1.06 | 0.18 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Dec 31, 2011 | 1.56 | 0.00 | 0.26 | 1.04 | — | 1.10 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Dec 31, 2010 | 1.24 | 0.00 | 0.29 | 1.99 | — | 1.09 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Dec 31, 2009 | 1.15 | 0.00 | 0.20 | 4.02 | — | 0.95 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Dec 31, 2008 | 2.52 | 0.00 | 0.08 | 4.91 | — | 1.01 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2007 | 1.24 | 0.01 | 0.00 | 0.35 | — | 0.99 | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2006 | 0.80 | 0.03 | 0.00 | 0.45 | — | 0.52 | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2005 | 0.68 | 0.04 | 0.00 | 0.31 | — | 0.50 | 0.00 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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., debt to equity, long-term trends, comparison to sector (software & services)
| International Business Machines Corp. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 2.01 | 0.54 |
| Dec 31, 2023 | 2.51 | 0.64 |
| Dec 31, 2022 | 2.32 | 0.71 |
| Dec 31, 2021 | 2.74 | 0.83 |
| Dec 31, 2020 | 2.99 | 0.95 |
| Dec 31, 2019 | 3.02 | 1.04 |
| Dec 31, 2018 | 2.73 | 1.08 |
| Dec 31, 2017 | 2.66 | 1.14 |
| Dec 31, 2016 | 2.31 | 0.90 |
| Dec 31, 2015 | 2.80 | 0.73 |
| Dec 31, 2014 | 3.44 | 0.54 |
| Dec 31, 2013 | 1.74 | 0.46 |
| Dec 31, 2012 | 1.76 | 0.44 |
| Dec 31, 2011 | 1.56 | 0.47 |
| Dec 31, 2010 | 1.24 | 0.46 |
| Dec 31, 2009 | 1.15 | 0.45 |
| Dec 31, 2008 | 2.52 | 0.56 |
| Dec 31, 2007 | 1.24 | 0.50 |
| Dec 31, 2006 | 0.80 | 0.31 |
| Dec 31, 2005 | 0.68 | 0.26 |
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., debt to equity, long-term trends, comparison to industry (information technology)
| International Business Machines Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 2.01 | 0.61 |
| Dec 31, 2023 | 2.51 | 0.66 |
| Dec 31, 2022 | 2.32 | 0.70 |
| Dec 31, 2021 | 2.74 | 0.83 |
| Dec 31, 2020 | 2.99 | 0.97 |
| Dec 31, 2019 | 3.02 | 0.98 |
| Dec 31, 2018 | 2.73 | 0.83 |
| Dec 31, 2017 | 2.66 | 0.81 |
| Dec 31, 2016 | 2.31 | 0.66 |
| Dec 31, 2015 | 2.80 | 0.56 |
| Dec 31, 2014 | 3.44 | 0.39 |
| Dec 31, 2013 | 1.74 | 0.29 |
| Dec 31, 2012 | 1.76 | 0.25 |
| Dec 31, 2011 | 1.56 | 0.27 |
| Dec 31, 2010 | 1.24 | 0.25 |
| Dec 31, 2009 | 1.15 | 0.26 |
| Dec 31, 2008 | 2.52 | 0.29 |
| Dec 31, 2007 | 1.24 | 0.27 |
| Dec 31, 2006 | 0.80 | 0.20 |
| Dec 31, 2005 | 0.68 | 0.15 |
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).