Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

International Business Machines Corp., ROA, long-term trends, calculation

Microsoft Excel

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 the annual financial data reveals several key trends across the reported years. Net income attributable to the company displayed an overall increasing trajectory from 2005 to 2011, reaching a peak of 15,855 million US dollars. Following this peak, net income experienced volatility with a significant decline observed in 2014, dropping to 12,022 million US dollars, and again in 2017 with a drastic fall to 5,753 million US dollars. The net income fluctuated notably afterwards, reaching a lower point of 1,639 million US dollars in 2022, before rebounding to 7,502 million US dollars in 2023, and slightly decreasing in 2024 to 6,023 million US dollars.

Total assets demonstrated a generally upward trend over the period, increasing from 105,748 million US dollars in 2005 to a high of 155,971 million US dollars in 2020. Thereafter, total assets declined, falling to 127,243 million US dollars by 2022 but showing signs of recovery towards the end of the timeline, reaching 137,175 million US dollars in 2024. This fluctuation in total assets appears to coincide with the variations in net income, indicating potential impacts on asset base management.

Return on Assets (ROA) exhibited a peak performance period from 2008 to 2012, with values consistently above 13%, signifying efficient asset utilization during these years. ROA then showed a declining trend from 2013 onward, falling sharply to as low as 1.29% in 2022. Although there was partial recovery in 2023 and 2024, the ROA remained significantly lower than in the peak years. The declining ROA in recent years suggests challenges in generating profits relative to the asset base, which may be linked to fluctuations in net income.

Net Income Trends
Steady growth until 2011, followed by volatility with significant declines in 2014, 2017, and 2022, and partial recovery in recent years.
Total Assets Trends
General increase till 2020, subsequent decline till 2022, and moderate recovery thereafter.
Return on Assets (ROA) Trends
Strong performance with ROA above 13% during 2008-2012, steady decline post-2012 reaching lows near 1%, with slight recovery at the end of the period.
Overall Insight
The data points to a period of strong profitability and asset efficiency up to the early 2010s, followed by financial challenges characterized by profit instability and reduced effectiveness in asset utilization. Recent signs indicate a partial financial recovery but at levels below historical peaks.

Comparison to Competitors

International Business Machines Corp., ROA, long-term trends, comparison to competitors

Microsoft Excel

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., ROA, long-term trends, comparison to sector (software & services)

Microsoft Excel

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., ROA, long-term trends, comparison to industry (information technology)

Microsoft Excel

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).