Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
International Business Machines Corp., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | International Business Machines Corp. current ratio deteriorated from Q2 2023 to Q3 2023 but then slightly improved from Q3 2023 to Q4 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | International Business Machines Corp. quick ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | International Business Machines Corp. cash ratio deteriorated from Q2 2023 to Q3 2023 but then slightly improved from Q3 2023 to Q4 2023. |
Current Ratio
International Business Machines Corp., current ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 32,908) | 27,705) | 34,458) | 35,982) | 29,118) | 28,999) | 27,896) | 31,330) | 29,539) | 29,967) | 30,774) | 34,038) | 39,165) | 39,845) | 39,953) | 38,931) | 38,420) | 38,121) | 77,517) | 52,705) | ||||||
| Current liabilities | 34,122) | 30,606) | 32,513) | 30,993) | 31,505) | 30,466) | 31,844) | 34,056) | 33,619) | 35,832) | 36,616) | 36,542) | 39,869) | 37,993) | 38,442) | 40,673) | 37,701) | 35,066) | 42,351) | 38,871) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 0.96 | 0.91 | 1.06 | 1.16 | 0.92 | 0.95 | 0.88 | 0.92 | 0.88 | 0.84 | 0.84 | 0.93 | 0.98 | 1.05 | 1.04 | 0.96 | 1.02 | 1.09 | 1.83 | 1.36 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 1.30 | 1.37 | 1.29 | 1.26 | 1.23 | 1.27 | 1.23 | 1.22 | 1.25 | 1.42 | 1.39 | 1.45 | 1.40 | 1.37 | 1.38 | 1.39 | 1.40 | 1.34 | 1.35 | 1.33 | ||||||
| Adobe Inc. | 1.34 | 1.25 | 1.16 | 1.12 | 1.11 | 1.14 | 1.07 | 1.04 | 1.25 | 1.39 | 1.31 | 1.27 | 1.48 | 1.44 | 1.29 | 1.23 | 0.79 | 0.74 | 0.70 | 0.97 | ||||||
| Intuit Inc. | 1.47 | 1.51 | 1.23 | 1.37 | 1.39 | 1.63 | 1.18 | 2.10 | 1.94 | 1.96 | 1.53 | 3.09 | 2.26 | 1.79 | 1.67 | 1.80 | 1.83 | 1.85 | 1.32 | 1.41 | ||||||
| Microsoft Corp. | 1.77 | 1.91 | 1.93 | 1.84 | 1.78 | 1.99 | 2.25 | 2.16 | 2.08 | 2.29 | 2.58 | 2.53 | 2.52 | 2.90 | 2.80 | 2.85 | 2.53 | 2.97 | 3.12 | 2.92 | ||||||
| Oracle Corp. | 0.91 | 0.82 | 0.65 | 0.60 | 1.62 | 1.52 | 1.65 | 2.04 | 2.30 | 2.16 | 2.17 | 2.66 | 3.03 | 2.12 | 2.37 | 2.25 | 2.49 | 2.65 | 2.80 | 3.43 | ||||||
| Palo Alto Networks Inc. | 0.78 | 0.74 | 0.64 | 0.70 | 0.77 | 0.74 | 0.66 | 0.68 | 0.91 | 1.38 | 0.98 | 1.63 | 1.91 | 1.29 | 1.78 | 1.78 | 1.78 | 1.86 | 1.87 | 2.10 | ||||||
| Salesforce Inc. | 1.02 | 1.05 | 1.06 | 1.03 | 1.05 | 1.06 | 0.93 | 1.33 | 1.23 | 1.22 | 1.15 | 1.15 | 1.08 | 1.05 | 0.97 | 0.96 | 0.95 | 0.86 | 0.80 | 1.29 | ||||||
| ServiceNow Inc. | 1.06 | 1.08 | 1.14 | 1.17 | 1.11 | 1.24 | 1.12 | 1.12 | 1.05 | 1.13 | 1.08 | 1.23 | 1.21 | 1.40 | 1.17 | 1.03 | 1.03 | 1.05 | 1.10 | 1.13 | ||||||
| Synopsys Inc. | 1.15 | 1.20 | 1.15 | 1.11 | 1.09 | 1.14 | 1.25 | 1.19 | 1.16 | 1.18 | 1.19 | 1.10 | 1.19 | 1.06 | 0.95 | 0.95 | 0.99 | 0.99 | 0.95 | 0.89 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 32,908 ÷ 34,122 = 0.96
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. current ratio deteriorated from Q2 2023 to Q3 2023 but then slightly improved from Q3 2023 to Q4 2023. |
Quick Ratio
International Business Machines Corp., quick ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 13,068) | 7,257) | 9,394) | 9,337) | 7,886) | 7,816) | 7,034) | 9,934) | 6,650) | 7,455) | 7,350) | 10,531) | 13,212) | 14,393) | 12,041) | 11,218) | 8,172) | 10,087) | 45,399) | 17,134) | ||||||
| Restricted cash | 21) | 19) | 31) | 198) | 103) | 159) | 220) | 286) | 307) | 352) | 215) | 142) | 463) | 160) | 147) | 152) | 141) | 138) | 135) | 137) | ||||||
| Marketable securities | 373) | 3,721) | 6,904) | 8,057) | 852) | 1,753) | 524) | 550) | 600) | 600) | 600) | 600) | 600) | 1,200) | 2,063) | 647) | 696) | 733) | 874) | 872) | ||||||
| Notes and accounts receivable, trade, net of allowances | 7,214) | 5,330) | 5,673) | 5,757) | 6,541) | 5,526) | 5,867) | 5,963) | 6,754) | 6,609) | 6,827) | 6,458) | 7,132) | 6,099) | 6,543) | 6,927) | 7,870) | 6,753) | 7,414) | 6,987) | ||||||
| Short-term financing receivables, held for investment, net of allowances | 6,102) | 5,032) | 5,564) | 6,057) | 6,851) | 6,280) | 6,619) | 6,759) | 7,221) | 7,161) | 8,194) | 8,822) | 10,892) | 10,848) | 11,967) | 12,126) | 14,192) | 12,330) | 15,543) | 20,287) | ||||||
| Other accounts receivable, net of allowances | 640) | 842) | 838) | 812) | 817) | 902) | 909) | 1,003) | 1,002) | 899) | 802) | 787) | 714) | 923) | 937) | 1,616) | 1,733) | 1,876) | 1,781) | 671) | ||||||
| Total quick assets | 27,418) | 22,201) | 28,404) | 30,218) | 23,050) | 22,436) | 21,173) | 24,495) | 22,534) | 23,076) | 23,988) | 27,340) | 33,013) | 33,623) | 33,698) | 32,686) | 32,804) | 31,917) | 71,146) | 46,088) | ||||||
| Current liabilities | 34,122) | 30,606) | 32,513) | 30,993) | 31,505) | 30,466) | 31,844) | 34,056) | 33,619) | 35,832) | 36,616) | 36,542) | 39,869) | 37,993) | 38,442) | 40,673) | 37,701) | 35,066) | 42,351) | 38,871) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.80 | 0.73 | 0.87 | 0.97 | 0.73 | 0.74 | 0.66 | 0.72 | 0.67 | 0.64 | 0.66 | 0.75 | 0.83 | 0.88 | 0.88 | 0.80 | 0.87 | 0.91 | 1.68 | 1.19 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 1.18 | 1.24 | 1.15 | 1.12 | 1.12 | 1.14 | 1.10 | 1.10 | 1.14 | 1.31 | 1.27 | 1.34 | 1.29 | 1.25 | 1.25 | 1.28 | 1.29 | 1.22 | 1.23 | 1.22 | ||||||
| Adobe Inc. | 1.22 | 1.12 | 1.03 | 1.00 | 1.00 | 1.01 | 0.93 | 0.89 | 1.11 | 1.25 | 1.18 | 1.12 | 1.34 | 1.28 | 1.11 | 1.06 | 0.70 | 0.64 | 0.62 | 0.86 | ||||||
| Intuit Inc. | 1.25 | 1.29 | 1.02 | 1.10 | 1.17 | 1.29 | 0.78 | 1.71 | 1.60 | 1.72 | 1.20 | 2.74 | 2.04 | 1.54 | 1.30 | 1.34 | 1.44 | 1.57 | 0.94 | 0.89 | ||||||
| Microsoft Corp. | 1.54 | 1.66 | 1.66 | 1.59 | 1.57 | 1.77 | 2.05 | 1.96 | 1.90 | 2.10 | 2.36 | 2.30 | 2.33 | 2.73 | 2.65 | 2.68 | 2.35 | 2.80 | 2.93 | 2.72 | ||||||
| Oracle Corp. | 0.74 | 0.65 | 0.50 | 0.49 | 1.43 | 1.34 | 1.45 | 1.90 | 2.15 | 2.00 | 2.02 | 2.50 | 2.83 | 1.91 | 2.16 | 2.09 | 2.31 | 2.45 | 2.63 | 3.26 | ||||||
| Palo Alto Networks Inc. | 0.72 | 0.66 | 0.58 | 0.65 | 0.73 | 0.70 | 0.62 | 0.64 | 0.86 | 1.23 | 0.88 | 1.48 | 1.78 | 1.16 | 1.64 | 1.64 | 1.65 | 1.73 | 1.74 | 1.98 | ||||||
| Salesforce Inc. | 0.90 | 0.89 | 0.91 | 0.88 | 0.93 | 0.89 | 0.79 | 1.19 | 1.11 | 1.05 | 0.98 | 1.00 | 0.95 | 0.87 | 0.82 | 0.81 | 0.82 | 0.68 | 0.64 | 1.13 | ||||||
| ServiceNow Inc. | 1.00 | 1.01 | 1.08 | 1.11 | 1.06 | 1.17 | 1.06 | 1.06 | 1.01 | 1.07 | 1.03 | 1.19 | 1.16 | 1.33 | 1.11 | 0.98 | 0.98 | 0.99 | 1.04 | 1.06 | ||||||
| Synopsys Inc. | 0.85 | 0.92 | 0.90 | 0.86 | 0.85 | 0.87 | 0.99 | 0.93 | 0.89 | 0.90 | 0.92 | 0.83 | 0.94 | 0.82 | 0.73 | 0.73 | 0.73 | 0.70 | 0.67 | 0.67 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 27,418 ÷ 34,122 = 0.80
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. quick ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
Cash Ratio
International Business Machines Corp., cash ratio calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 13,068) | 7,257) | 9,394) | 9,337) | 7,886) | 7,816) | 7,034) | 9,934) | 6,650) | 7,455) | 7,350) | 10,531) | 13,212) | 14,393) | 12,041) | 11,218) | 8,172) | 10,087) | 45,399) | 17,134) | ||||||
| Restricted cash | 21) | 19) | 31) | 198) | 103) | 159) | 220) | 286) | 307) | 352) | 215) | 142) | 463) | 160) | 147) | 152) | 141) | 138) | 135) | 137) | ||||||
| Marketable securities | 373) | 3,721) | 6,904) | 8,057) | 852) | 1,753) | 524) | 550) | 600) | 600) | 600) | 600) | 600) | 1,200) | 2,063) | 647) | 696) | 733) | 874) | 872) | ||||||
| Total cash assets | 13,462) | 10,997) | 16,329) | 17,592) | 8,841) | 9,728) | 7,778) | 10,770) | 7,557) | 8,407) | 8,165) | 11,273) | 14,275) | 15,753) | 14,251) | 12,017) | 9,009) | 10,958) | 46,408) | 18,143) | ||||||
| Current liabilities | 34,122) | 30,606) | 32,513) | 30,993) | 31,505) | 30,466) | 31,844) | 34,056) | 33,619) | 35,832) | 36,616) | 36,542) | 39,869) | 37,993) | 38,442) | 40,673) | 37,701) | 35,066) | 42,351) | 38,871) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.39 | 0.36 | 0.50 | 0.57 | 0.28 | 0.32 | 0.24 | 0.32 | 0.22 | 0.23 | 0.22 | 0.31 | 0.36 | 0.41 | 0.37 | 0.30 | 0.24 | 0.31 | 1.10 | 0.47 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 0.50 | 0.50 | 0.38 | 0.36 | 0.45 | 0.41 | 0.35 | 0.37 | 0.52 | 0.67 | 0.65 | 0.68 | 0.67 | 0.54 | 0.49 | 0.52 | 0.55 | 0.45 | 0.44 | 0.43 | ||||||
| Adobe Inc. | 0.95 | 0.90 | 0.82 | 0.76 | 0.75 | 0.77 | 0.72 | 0.65 | 0.84 | 1.00 | 0.94 | 0.85 | 1.09 | 1.03 | 0.84 | 0.80 | 0.51 | 0.47 | 0.45 | 0.61 | ||||||
| Intuit Inc. | 0.97 | 0.97 | 0.54 | 0.82 | 0.90 | 1.09 | 0.48 | 1.52 | 1.46 | 1.52 | 1.02 | 2.69 | 2.00 | 1.46 | 1.03 | 1.28 | 1.39 | 1.46 | 0.67 | 0.84 | ||||||
| Microsoft Corp. | 1.07 | 1.22 | 1.22 | 1.23 | 1.10 | 1.35 | 1.62 | 1.62 | 1.47 | 1.74 | 1.96 | 1.97 | 1.89 | 2.34 | 2.25 | 2.35 | 1.93 | 2.44 | 2.54 | 2.41 | ||||||
| Oracle Corp. | 0.44 | 0.38 | 0.27 | 0.32 | 1.12 | 1.12 | 1.21 | 1.70 | 1.93 | 1.77 | 1.81 | 2.26 | 2.50 | 1.64 | 1.88 | 1.89 | 2.03 | 2.23 | 2.43 | 3.07 | ||||||
| Palo Alto Networks Inc. | 0.31 | 0.46 | 0.39 | 0.46 | 0.44 | 0.50 | 0.45 | 0.48 | 0.57 | 0.98 | 0.72 | 1.22 | 1.39 | 0.87 | 1.40 | 1.39 | 1.37 | 1.52 | 1.51 | 1.76 | ||||||
| Salesforce Inc. | 0.48 | 0.65 | 0.67 | 0.68 | 0.48 | 0.62 | 0.55 | 0.98 | 0.67 | 0.78 | 0.72 | 0.76 | 0.54 | 0.62 | 0.59 | 0.61 | 0.39 | 0.43 | 0.40 | 0.91 | ||||||
| ServiceNow Inc. | 0.66 | 0.73 | 0.82 | 0.85 | 0.71 | 0.89 | 0.81 | 0.83 | 0.67 | 0.80 | 0.76 | 0.94 | 0.83 | 1.04 | 0.82 | 0.68 | 0.61 | 0.67 | 0.74 | 0.79 | ||||||
| Synopsys Inc. | 0.53 | 0.67 | 0.62 | 0.48 | 0.56 | 0.60 | 0.70 | 0.51 | 0.65 | 0.66 | 0.65 | 0.47 | 0.58 | 0.51 | 0.42 | 0.34 | 0.42 | 0.42 | 0.36 | 0.29 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 13,462 ÷ 34,122 = 0.39
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. cash ratio deteriorated from Q2 2023 to Q3 2023 but then slightly improved from Q3 2023 to Q4 2023. |