Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

International Business Machines Corp. (NYSE:IBM)

Analysis of Liquidity Ratios

Beginner level

Liquidity Ratios (Summary)

International Business Machines Corp., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current ratio 1.02 1.29 1.33 1.21 1.24
Quick ratio 0.87 1.12 1.19 1.04 1.07
Cash ratio 0.24 0.32 0.34 0.24 0.24

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. International Business Machines Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. International Business Machines Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. International Business Machines Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Current Ratio

International Business Machines Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 38,420  49,146  49,735  43,888  42,504 
Current liabilities 37,701  38,227  37,363  36,275  34,269 
Liquidity Ratio
Current ratio1 1.02 1.29 1.33 1.21 1.24
Benchmarks
Current Ratio, Competitors2
Adobe Inc. 0.79 1.13 2.05 2.08 2.18
Alphabet Inc. 3.37 3.92 5.14 6.29
Autodesk Inc. 0.70 0.88 1.13 1.88 1.91
Facebook Inc. 4.40 7.19 12.92 11.97
Intuit Inc. 1.83 1.14 0.73 0.72 1.47
Microsoft Corp. 2.53 2.90 2.48 2.35 2.50
Oracle Corp. 2.49 3.96 3.08 3.74 4.13
salesforce.com inc. 0.95 0.92 0.83 0.77 0.81
ServiceNow Inc. 1.03 1.17 1.15 1.25
Current Ratio, Sector
Software & Computer Services 2.37 2.81 2.79 2.77
Current Ratio, Industry
Technology 2.04 2.17 2.39 2.36

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 38,420 ÷ 37,701 = 1.02

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. International Business Machines Corp.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Quick Ratio

International Business Machines Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,172  11,379  11,972  7,826  7,686 
Restricted cash 141  225  262  —  — 
Marketable securities 696  618  608  701  508 
Notes and accounts receivable, trade, net of allowances 7,870  7,432  8,928  9,182  8,333 
Short-term financing receivables, net of allowances 14,192  22,388  21,721  19,006  19,020 
Other accounts receivable, net of allowances 1,733  743  981  1,057  1,201 
Total quick assets 32,804  42,785  44,472  37,772  36,748 
 
Current liabilities 37,701  38,227  37,363  36,275  34,269 
Liquidity Ratio
Quick ratio1 0.87 1.12 1.19 1.04 1.07
Benchmarks
Quick Ratio, Competitors2
Adobe Inc. 0.70 1.06 2.00 1.99 2.11
Alphabet Inc. 3.21 3.75 4.97 6.00
Autodesk Inc. 0.62 0.83 1.08 1.83 1.78
Facebook Inc. 4.28 6.94 12.64 11.63
Intuit Inc. 1.44 0.86 0.45 0.53 1.03
Microsoft Corp. 2.35 2.74 2.37 2.22 2.30
Oracle Corp. 2.31 3.78 2.95 3.57 3.92
salesforce.com inc. 0.82 0.83 0.74 0.68 0.66
ServiceNow Inc. 0.92 1.03 1.05 1.14
Quick Ratio, Sector
Software & Computer Services 2.21 2.65 2.66 2.60
Quick Ratio, Industry
Technology 1.83 1.96 2.18 2.14

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 32,804 ÷ 37,701 = 0.87

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. International Business Machines Corp.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Cash Ratio

International Business Machines Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,172  11,379  11,972  7,826  7,686 
Restricted cash 141  225  262  —  — 
Marketable securities 696  618  608  701  508 
Total cash assets 9,009  12,222  12,842  8,527  8,194 
 
Current liabilities 37,701  38,227  37,363  36,275  34,269 
Liquidity Ratio
Cash ratio1 0.24 0.32 0.34 0.24 0.24
Benchmarks
Cash Ratio, Competitors2
Adobe Inc. 0.51 0.75 1.65 1.69 1.80
Alphabet Inc. 2.65 3.15 4.21 5.15
Autodesk Inc. 0.41 0.62 0.87 1.41 1.45
Facebook Inc. 3.64 5.86 11.09 10.24
Intuit Inc. 1.39 0.81 0.40 0.48 0.97
Microsoft Corp. 1.93 2.29 2.06 1.91 1.94
Oracle Corp. 2.03 3.50 2.73 3.26 3.56
salesforce.com inc. 0.39 0.45 0.30 0.24 0.23
ServiceNow Inc. 0.61 0.74 0.85 0.84
Cash Ratio, Sector
Software & Computer Services 1.74 2.11 2.15 2.08
Cash Ratio, Industry
Technology 1.38 1.47 1.74 1.69

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23).

1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,009 ÷ 37,701 = 0.24

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. International Business Machines Corp.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019.