Return on Equity (ROE)
since 2005
Calculation
International Business Machines Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to IBM1 | ÷ | Total IBM stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 22.06% | = | 100 | × | 6,023) | ÷ | 27,307) |
| Dec 31, 2023 | 33.29% | = | 100 | × | 7,502) | ÷ | 22,533) |
| Dec 31, 2022 | 7.47% | = | 100 | × | 1,639) | ÷ | 21,944) |
| Dec 31, 2021 | 30.38% | = | 100 | × | 5,743) | ÷ | 18,901) |
| Dec 31, 2020 | 27.14% | = | 100 | × | 5,590) | ÷ | 20,597) |
| Dec 31, 2019 | 45.25% | = | 100 | × | 9,431) | ÷ | 20,841) |
| Dec 31, 2018 | 51.96% | = | 100 | × | 8,728) | ÷ | 16,796) |
| Dec 31, 2017 | 32.70% | = | 100 | × | 5,753) | ÷ | 17,594) |
| Dec 31, 2016 | 65.07% | = | 100 | × | 11,872) | ÷ | 18,246) |
| Dec 31, 2015 | 92.48% | = | 100 | × | 13,190) | ÷ | 14,262) |
| Dec 31, 2014 | 101.30% | = | 100 | × | 12,022) | ÷ | 11,868) |
| Dec 31, 2013 | 72.32% | = | 100 | × | 16,483) | ÷ | 22,792) |
| Dec 31, 2012 | 88.04% | = | 100 | × | 16,604) | ÷ | 18,860) |
| Dec 31, 2011 | 78.73% | = | 100 | × | 15,855) | ÷ | 20,138) |
| Dec 31, 2010 | 64.36% | = | 100 | × | 14,833) | ÷ | 23,046) |
| Dec 31, 2009 | 59.31% | = | 100 | × | 13,425) | ÷ | 22,637) |
| Dec 31, 2008 | 91.60% | = | 100 | × | 12,334) | ÷ | 13,465) |
| Dec 31, 2007 | 36.59% | = | 100 | × | 10,418) | ÷ | 28,470) |
| Dec 31, 2006 | 33.30% | = | 100 | × | 9,492) | ÷ | 28,506) |
| Dec 31, 2005 | 23.97% | = | 100 | × | 7,934) | ÷ | 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
The financial data reveals notable fluctuations and trends in net income, stockholders' equity, and return on equity (ROE) over the analyzed periods.
- Net Income Attributable to IBM (US$ in millions)
- Net income demonstrated a general upward trend from 2005 to 2011, rising from 7,934 million USD to a peak of 15,855 million USD, signaling strong profitability growth during this period. Thereafter, net income displayed volatility, notably declining sharply in 2014 to 12,022 million USD and again in 2017 to 5,753 million USD. Following this, a moderate recovery occurred through 2019, but the figure again fell significantly in 2021 and 2022, hitting a low of 1,639 million USD in 2022. The latest data for 2023 and 2024 show some recovery to 7,502 and 6,023 million USD respectively, though still below earlier peaks.
- Total IBM Stockholders’ Equity (US$ in millions)
- Stockholders’ equity initially decreased sharply from 33,098 million USD in 2005 to a low of 13,465 million USD in 2008. Following this trough, the equity gradually recovered with fluctuations, reaching around 22,792 million USD in 2013 before declining again in 2014 to 11,868 million USD. From 2015 onwards, equity demonstrated a general upward trajectory, achieving 27,307 million USD by 2024. This recovery suggests a strengthening financial base after earlier declines.
- Return on Equity (ROE, %)
- ROE exhibited significant variability, closely mirroring changes in net income and equity. It peaked at extraordinarily high levels in 2008 (91.6%), 2009 (59.31%), and 2010 (64.36%), indicative of sharp reductions in equity relative to net income or unusually high profitability. Following these peaks, ROE remained elevated but followed a generally declining pattern after 2010, falling to 7.47% in 2022, which reflects weaker profitability or increased equity base relative to net income. Some recovery is noted by 2023 and 2024 where ROE increased to 33.29% and 22.06%, respectively, though not approaching the earlier highs.
Overall, the data indicates a period of strong profitability growth up to early 2010s, followed by significant volatility and declines in net income and ROE, alongside an initial shrinking and later recovery of stockholders' equity. The fluctuations in ROE highlight the combined effects of changes in net income and equity, reflecting periods of both operational challenges and financial restructuring or investment. The recent partial recovery in net income and ROE suggests some stabilization but not a full return to prior peak performance levels.
Comparison to Competitors
International Business Machines Corp., ROE, 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 | 22.06% | 25.68% | 39.42% | 22.58% | 3.88% | — | 16.07% | 32.83% | 120.26% | 9.24% | 49.86% | 6.93% | 14.83% | 25.17% | 17.09% |
| Dec 31, 2023 | 33.29% | 26.75% | 32.86% | 30.58% | -12.52% | — | 13.81% | 35.09% | 792.45% | 6.04% | 25.15% | 0.36% | 22.69% | 20.01% | -6.57% |
| Dec 31, 2022 | 7.47% | 31.11% | 33.85% | 30.93% | -22.89% | — | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Dec 31, 2021 | 30.38% | 30.25% | 32.59% | 25.39% | -10.64% | — | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Dec 31, 2020 | 27.14% | 30.05% | 39.66% | 23.69% | -19.10% | 71.41% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Dec 31, 2019 | 45.25% | 33.17% | 28.03% | 47.03% | — | 66.30% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Dec 31, 2018 | 51.96% | 39.17% | 27.67% | 26.84% | — | 54.00% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 31, 2017 | 32.70% | 38.50% | 20.02% | 20.63% | — | 30.07% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 31, 2016 | 65.07% | 54.42% | 15.74% | 27.38% | — | 24.49% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | 92.48% | 49.78% | 8.99% | 18.34% | — | 19.79% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 101.30% | 51.32% | 3.96% | 11.92% | — | 20.87% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 31, 2013 | 72.32% | 66.16% | 4.31% | 14.21% | — | 16.98% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 31, 2012 | 88.04% | 61.59% | 12.49% | 48.07% | — | 19.39% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 78.73% | 58.72% | 14.40% | 17.57% | — | 15.37% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 64.36% | 62.79% | 14.92% | 45.74% | — | 13.57% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 59.31% | 55.08% | 7.90% | -138.29% | — | 10.85% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | 91.60% | 66.59% | 19.77% | -1,818.25% | — | 14.94% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 31, 2007 | 36.59% | 60.25% | 15.57% | 14.24% | — | 18.48% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 31, 2006 | 33.30% | 51.38% | 9.82% | 8.39% | — | 13.44% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 31, 2005 | 23.97% | 55.42% | 32.34% | 2.67% | — | 16.71% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| International Business Machines Corp. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 22.06% | 28.71% |
| Dec 31, 2023 | 33.29% | 28.63% |
| Dec 31, 2022 | 7.47% | 31.20% |
| Dec 31, 2021 | 30.38% | 36.34% |
| Dec 31, 2020 | 27.14% | 30.37% |
| Dec 31, 2019 | 45.25% | 35.75% |
| Dec 31, 2018 | 51.96% | 20.25% |
| Dec 31, 2017 | 32.70% | 23.84% |
| Dec 31, 2016 | 65.07% | 26.24% |
| Dec 31, 2015 | 92.48% | 23.03% |
| Dec 31, 2014 | 101.30% | 28.07% |
| Dec 31, 2013 | 72.32% | 31.66% |
| Dec 31, 2012 | 88.04% | 32.62% |
| Dec 31, 2011 | 78.73% | 38.74% |
| Dec 31, 2010 | 64.36% | 37.79% |
| Dec 31, 2009 | 59.31% | 35.83% |
| Dec 31, 2008 | 91.60% | 43.83% |
| Dec 31, 2007 | 36.59% | 35.38% |
| Dec 31, 2006 | 33.30% | 28.75% |
| Dec 31, 2005 | 23.97% | 24.85% |
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., ROE, long-term trends, comparison to industry (information technology)
| International Business Machines Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 22.06% | 29.37% |
| Dec 31, 2023 | 33.29% | 32.00% |
| Dec 31, 2022 | 7.47% | 39.15% |
| Dec 31, 2021 | 30.38% | 42.48% |
| Dec 31, 2020 | 27.14% | 35.75% |
| Dec 31, 2019 | 45.25% | 36.67% |
| Dec 31, 2018 | 51.96% | 30.39% |
| Dec 31, 2017 | 32.70% | 23.40% |
| Dec 31, 2016 | 65.07% | 23.36% |
| Dec 31, 2015 | 92.48% | 26.17% |
| Dec 31, 2014 | 101.30% | 25.60% |
| Dec 31, 2013 | 72.32% | 24.89% |
| Dec 31, 2012 | 88.04% | 26.24% |
| Dec 31, 2011 | 78.73% | 29.20% |
| Dec 31, 2010 | 64.36% | 27.87% |
| Dec 31, 2009 | 59.31% | 20.26% |
| Dec 31, 2008 | 91.60% | 25.64% |
| Dec 31, 2007 | 36.59% | 23.99% |
| Dec 31, 2006 | 33.30% | 22.71% |
| Dec 31, 2005 | 23.97% | 22.09% |
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).