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, 2025 | 1.88 | = | 61,260) | ÷ | 32,648) |
| 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: 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), 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 debt-to-equity ratio exhibits considerable fluctuation over the observed period, spanning from 2005 to 2025. Initially, the ratio increased from 0.68 in 2005 to 0.80 in 2006, indicating a moderate increase in leverage. A more substantial rise occurred between 2006 and 2008, peaking at 2.52, driven by a significant increase in total debt coupled with a decrease in total stockholders’ equity.
Following the peak in 2008, the ratio experienced a decline to 1.15 in 2009, primarily due to a reduction in total debt. However, it remained relatively stable, fluctuating between 1.15 and 1.76 over the subsequent years (2010-2012). A renewed increase was observed from 2012 to 2014, reaching a high of 3.44, largely attributable to a substantial increase in total debt and a concurrent decrease in stockholders’ equity.
The ratio then decreased from 3.44 in 2014 to 2.01 in 2016, reflecting a stabilization of debt levels and a modest increase in equity. From 2016 to 2019, the ratio experienced a gradual increase, reaching 3.02, driven by a more pronounced increase in total debt. A slight decrease occurred in 2020, followed by a further decline to 1.88 in 2025, suggesting a relative improvement in the company’s financial leverage position.
- Overall Trend
- The overall trend demonstrates a cyclical pattern of increasing and decreasing leverage. While the ratio experienced periods of significant increase, particularly in 2008 and 2014, it generally trended downwards in the later years of the period, indicating a potential shift towards a more conservative capital structure.
- Peak Leverage
- The highest debt-to-equity ratio of 3.44 was recorded in 2014. This suggests a period of heightened financial risk, as a larger proportion of the company’s assets were financed by debt rather than equity. The subsequent decline from this peak indicates a reduction in this risk.
- Recent Performance (2020-2025)
- From 2020 to 2025, the debt-to-equity ratio decreased from 2.99 to 1.88. This suggests a strengthening of the company’s financial position, with a greater reliance on equity financing and a reduction in debt-related financial obligations. The decrease in the ratio could be attributed to debt reduction strategies or increased profitability leading to equity growth.
- Debt and Equity Movements
- The fluctuations in the debt-to-equity ratio are directly linked to the movements in both total debt and total stockholders’ equity. Periods of increasing debt, especially when coupled with decreasing equity, resulted in higher ratios. Conversely, periods of debt reduction or equity increases led to lower ratios.
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Comparison to Competitors
International Business Machines Corp., debt to equity, long-term trends, comparison to competitors
| International Business Machines Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 1.88 | 0.17 | 0.53 | 1.65 | 0.45 | 0.23 | 0.26 | 0.30 | 0.26 | 4.53 | 0.00 | 0.00 | 0.15 | 0.12 | 0.48 | 0.33 |
| Dec 31, 2024 | 2.01 | 0.04 | 0.40 | 3.22 | 0.53 | 0.32 | 0.59 | 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 | 2.48 | 0.19 | 0.51 | 0.37 | 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 | 1.69 | 0.27 | 0.72 | 0.52 | 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 | 1.51 | 0.13 | 0.85 | 0.71 | 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 | 0.60 | 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 | — | 0.00 | 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 | — | — | 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 | — | — | 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 | — | — | 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 | — | — | 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 | — | — | 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 | — | — | 0.14 | 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 | — | — | 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 | — | — | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Dec 31, 2010 | 1.24 | 0.00 | 0.29 | — | 1.99 | — | — | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Dec 31, 2009 | 1.15 | 0.00 | 0.20 | — | 4.02 | — | — | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Dec 31, 2008 | 2.52 | 0.00 | 0.08 | — | 4.91 | — | — | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2007 | 1.24 | 0.01 | 0.00 | — | 0.35 | — | — | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2006 | 0.80 | 0.03 | 0.00 | — | 0.45 | — | — | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2005 | 0.68 | 0.04 | 0.00 | — | 0.31 | — | — | 0.00 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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), 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, 2025 | 1.88 | 0.49 |
| 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 | 0.94 |
| Dec 31, 2019 | 3.02 | 1.04 |
| Dec 31, 2018 | 2.73 | 1.07 |
| 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 | 0.44 |
| 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: 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), 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, 2025 | 1.88 | 0.52 |
| 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 | 0.28 |
| Dec 31, 2007 | 1.24 | 0.26 |
| Dec 31, 2006 | 0.80 | 0.19 |
| Dec 31, 2005 | 0.68 | 0.15 |
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), 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).