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International Business Machines Corp. (NYSE:IBM)

Analysis of Liquidity Ratios
Quarterly Data

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Liquidity Ratios (Summary)

International Business Machines Corp., liquidity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Current ratio 1.02 1.09 1.83 1.36 1.29 1.31 1.32 1.37 1.33 1.41 1.25 1.18 1.21 1.20 1.30 1.37 1.24 1.25 1.27 1.30
Quick ratio 0.87 0.91 1.68 1.19 1.12 1.13 1.14 1.19 1.19 1.22 1.09 1.00 1.04 1.02 1.11 1.20 1.07 1.03 1.03 1.03
Cash ratio 0.24 0.31 1.10 0.47 0.32 0.40 0.34 0.37 0.34 0.36 0.34 0.29 0.24 0.29 0.32 0.43 0.24 0.28 0.25 0.25

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-30), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-04-24), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-10-31), 10-Q (filing date: 2017-07-25), 10-Q (filing date: 2017-04-25), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-10-25), 10-Q (filing date: 2016-07-26), 10-Q (filing date: 2016-04-26), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Current Ratio

International Business Machines Corp., current ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current assets 38,420  38,121  77,517  52,705  49,146  48,257  46,795  49,122  49,735  44,742  45,013  42,889  43,888  41,433  43,524  47,623  42,504  42,112  45,186  46,316 
Current liabilities 37,701  35,066  42,351  38,871  38,227  36,822  35,442  35,733  37,363  31,697  35,966  36,481  36,275  34,447  33,585  34,664  34,269  33,732  35,535  35,640 
Liquidity Ratio
Current ratio1 1.02 1.09 1.83 1.36 1.29 1.31 1.32 1.37 1.33 1.41 1.25 1.18 1.21 1.20 1.30 1.37 1.24 1.25 1.27 1.30
Benchmarks
Current Ratio, Competitors2
Adobe Inc. 0.79 0.74 0.70 0.97 1.13 1.66 2.08 2.12 2.05 2.05 1.99 1.95 2.08 2.16 2.20 2.21 2.18 2.20 2.16 2.22
Alphabet Inc. 3.37 3.78 3.98 3.96 3.92 4.14 4.15 4.87 5.14 5.77 6.01 7.13 6.29 6.88 5.43 5.14 4.67 4.77 4.85 5.60
Facebook Inc. 4.40 4.66 4.47 5.38 7.19 9.00 10.67 9.91 12.92 13.37 12.31 12.61 11.97 11.69 12.22 13.16 11.25 10.68 9.01 8.59
Intuit Inc. 1.83 1.85 1.32 1.41 1.14 1.05 0.63 0.67 0.73 0.90 0.60 0.58 0.72 0.81 0.62 0.76 1.47 1.35 1.22 1.79
Microsoft Corp. 2.53 2.97 3.12 2.92 2.90 3.40 2.89 3.12 2.48 2.81 2.05 2.69 2.35 2.90 3.00 2.46 2.50 2.91 2.45 2.52
Oracle Corp. 2.49 2.65 2.80 3.43 3.96 4.33 5.07 3.63 3.08 4.18 3.96 4.92 3.74 4.83 4.26 4.04 4.13 3.72 4.34 4.35
salesforce.com inc. 0.95 0.86 0.80 1.29 0.92 0.82 0.77 0.71 0.83 0.60 0.61 0.74 0.77 0.74 0.71 0.66 0.81 0.74 0.66 0.61
ServiceNow Inc. 1.03 1.05 1.10 1.13 1.17 1.26 1.28 1.19 1.15 1.66 1.73 1.22 1.25 1.25 1.29 1.14 1.48 1.55 1.61 1.82

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-30), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-04-24), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-10-31), 10-Q (filing date: 2017-07-25), 10-Q (filing date: 2017-04-25), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-10-25), 10-Q (filing date: 2016-07-26), 10-Q (filing date: 2016-04-26), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Quick Ratio

International Business Machines Corp., quick ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,172  10,087  45,399  17,134  11,379  11,563  10,741  11,949  11,972  10,915  11,696  10,096  7,826  9,039  10,017  14,354  7,686  9,480  8,393  8,796 
Restricted cash 141  138  135  137  225  168  219  313  262  —  —  —  —  —  —  —  —  —  —  — 
Marketable securities 696  733  874  872  618  2,932  966  893  608  600  599  599  701  929  600  515  508  88  367  8 
Notes and accounts receivable, trade, net of allowances 7,870  6,753  7,414  6,987  7,432  7,071  7,445  7,778  8,928  8,150  8,401  8,377  9,182  8,291  8,782  8,527  8,333  7,987  8,632  8,806 
Short-term financing receivables, net of allowances 14,192  12,330  15,543  20,287  22,388  19,249  19,806  20,245  21,721  18,050  17,563  16,362  19,006  16,032  16,635  16,646  19,020  16,195  16,888  16,303 
Other accounts receivable, net of allowances 1,733  1,876  1,781  671  743  767  1,089  1,206  981  926  994  1,130  1,057  873  1,130  1,557  1,201  931  2,390  2,740 
Total quick assets 32,804  31,917  71,146  46,088  42,785  41,750  40,266  42,384  44,472  38,641  39,253  36,564  37,772  35,164  37,164  41,599  36,748  34,681  36,670  36,653 
 
Current liabilities 37,701  35,066  42,351  38,871  38,227  36,822  35,442  35,733  37,363  31,697  35,966  36,481  36,275  34,447  33,585  34,664  34,269  33,732  35,535  35,640 
Liquidity Ratio
Quick ratio1 0.87 0.91 1.68 1.19 1.12 1.13 1.14 1.19 1.19 1.22 1.09 1.00 1.04 1.02 1.11 1.20 1.07 1.03 1.03 1.03
Benchmarks
Quick Ratio, Competitors2
Adobe Inc. 0.70 0.64 0.62 0.86 1.06 1.58 1.99 2.04 2.00 1.98 1.91 1.86 1.99 2.07 2.09 2.10 2.11 2.07 2.02 2.07
Alphabet Inc. 3.21 3.62 3.84 3.80 3.75 3.97 3.99 4.71 4.97 5.58 5.82 6.91 6.00 6.64 5.20 4.87 4.38 4.47 4.56 5.16
Facebook Inc. 4.28 4.50 4.32 5.22 6.94 8.65 10.26 9.65 12.64 12.92 11.87 12.20 11.63 11.26 11.80 12.70 10.91 9.96 8.47 7.97
Intuit Inc. 1.44 1.57 0.94 0.89 0.86 0.83 0.41 0.42 0.45 0.74 0.41 0.33 0.53 0.64 0.36 0.32 1.03 1.08 0.87 1.27
Microsoft Corp. 2.35 2.80 2.93 2.72 2.74 3.24 2.77 2.96 2.37 2.67 1.94 2.52 2.22 2.66 2.75 2.24 2.30 2.65 2.24 2.28
Oracle Corp. 2.31 2.45 2.63 3.26 3.78 4.14 4.86 3.49 2.95 3.99 3.79 4.74 3.57 4.62 4.09 3.86 3.92 3.48 4.09 4.12
salesforce.com inc. 0.82 0.68 0.64 1.13 0.83 0.71 0.67 0.61 0.74 0.50 0.46 0.63 0.68 0.61 0.54 0.49 0.66 0.55 0.48 0.47
ServiceNow Inc. 0.92 0.92 0.97 0.99 1.03 1.13 1.15 1.08 1.05 1.53 1.62 1.10 1.14 1.14 1.18 1.04 1.37 1.40 1.46 1.64

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-30), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-04-24), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-10-31), 10-Q (filing date: 2017-07-25), 10-Q (filing date: 2017-04-25), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-10-25), 10-Q (filing date: 2016-07-26), 10-Q (filing date: 2016-04-26), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Cash Ratio

International Business Machines Corp., cash ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,172  10,087  45,399  17,134  11,379  11,563  10,741  11,949  11,972  10,915  11,696  10,096  7,826  9,039  10,017  14,354  7,686  9,480  8,393  8,796 
Restricted cash 141  138  135  137  225  168  219  313  262  —  —  —  —  —  —  —  —  —  —  — 
Marketable securities 696  733  874  872  618  2,932  966  893  608  600  599  599  701  929  600  515  508  88  367  8 
Total cash assets 9,009  10,958  46,408  18,143  12,222  14,663  11,926  13,155  12,842  11,515  12,295  10,695  8,527  9,968  10,617  14,869  8,194  9,568  8,760  8,804 
 
Current liabilities 37,701  35,066  42,351  38,871  38,227  36,822  35,442  35,733  37,363  31,697  35,966  36,481  36,275  34,447  33,585  34,664  34,269  33,732  35,535  35,640 
Liquidity Ratio
Cash ratio1 0.24 0.31 1.10 0.47 0.32 0.40 0.34 0.37 0.34 0.36 0.34 0.29 0.24 0.29 0.32 0.43 0.24 0.28 0.25 0.25
Benchmarks
Cash Ratio, Competitors2
Adobe Inc. 0.51 0.47 0.45 0.61 0.75 1.30 1.70 1.74 1.65 1.67 1.62 1.57 1.69 1.77 1.81 1.84 1.80 1.78 1.76 1.78
Alphabet Inc. 2.65 3.09 3.27 3.25 3.15 3.40 3.42 4.05 4.21 4.84 5.07 6.06 5.15 5.80 4.52 4.26 3.78 3.94 4.02 4.56
Facebook Inc. 3.64 3.92 3.74 4.57 5.86 7.54 9.06 8.64 11.09 11.59 10.69 11.03 10.24 10.07 10.54 11.40 9.58 8.84 7.51 7.11
Intuit Inc. 1.39 1.46 0.67 0.84 0.81 0.72 0.24 0.37 0.40 0.64 0.23 0.28 0.48 0.56 0.14 0.25 0.97 0.98 0.65 1.17
Microsoft Corp. 1.93 2.44 2.54 2.41 2.29 2.87 2.46 2.68 2.06 2.42 1.73 2.33 1.91 2.38 2.41 2.01 1.94 2.34 1.90 2.00
Oracle Corp. 2.03 2.23 2.43 3.07 3.50 3.92 4.62 3.31 2.73 3.76 3.56 4.52 3.26 4.29 3.81 3.63 3.56 3.17 3.73 3.86
salesforce.com inc. 0.39 0.43 0.40 0.91 0.45 0.50 0.47 0.42 0.30 0.24 0.22 0.40 0.24 0.34 0.28 0.26 0.23 0.31 0.24 0.26
ServiceNow Inc. 0.61 0.67 0.74 0.79 0.74 0.89 0.95 0.90 0.85 1.31 1.39 0.86 0.84 0.90 0.95 0.86 1.10 1.15 1.22 1.38

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-30), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-04-24), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-10-31), 10-Q (filing date: 2017-07-25), 10-Q (filing date: 2017-04-25), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-10-25), 10-Q (filing date: 2016-07-26), 10-Q (filing date: 2016-04-26), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.