Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

International Business Machines Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 2.99 3.02 2.73 2.66 2.31
Debt to equity (including operating lease liability) 3.23 3.27 2.73 2.66 2.31
Debt to capital 0.75 0.75 0.73 0.73 0.70
Debt to capital (including operating lease liability) 0.76 0.77 0.73 0.73 0.70
Debt to assets 0.39 0.41 0.37 0.37 0.36
Debt to assets (including operating lease liability) 0.43 0.45 0.37 0.37 0.36
Financial leverage 7.57 7.30 7.35 7.12 6.44
Coverage Ratios
Interest coverage 4.62 8.58 16.71 19.56 20.60
Fixed charge coverage 2.62 4.41 5.26 5.69 6.77

Based on: 10-K (filing date: 2021-02-23), 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. International Business Machines Corp.’s debt to equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. International Business Machines Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. International Business Machines Corp.’s debt to capital ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. International Business Machines Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. International Business Machines Corp.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. International Business Machines Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. International Business Machines Corp.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. International Business Machines Corp.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. International Business Machines Corp.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity

International Business Machines Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
 
Total IBM stockholders’ equity 20,597  20,841  16,796  17,594  18,246 
Solvency Ratio
Debt to equity1 2.99 3.02 2.73 2.66 2.31
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.31 0.39 0.44 0.22 0.26
Autodesk Inc. 2.03 0.92
Automatic Data Processing Inc. 0.35 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.41 0.41 0.88 0.81 1.08
Fiserv Inc. 0.64 0.66 2.60 1.79 1.80
Intuit Inc. 0.66 0.12 0.19 0.36 0.86
Mastercard Inc. 1.98 1.45 1.17 0.99 0.92
Microsoft Corp. 0.62 0.77 0.97 1.23 0.76
Oracle Corp. 5.93 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.45 0.29 0.13 0.06 0.00
salesforce.com inc. 0.09 0.22 0.21 0.32 0.36
ServiceNow Inc. 0.58 0.33 0.60 2.01 1.31
Visa Inc. 0.66 0.48 0.49 0.56 0.48
Debt to Equity, Sector
Software & Services 0.83 0.84 0.96 0.99 0.80
Debt to Equity, Industry
Information Technology 0.83 0.81 0.81 0.79 0.65

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to equity = Total debt ÷ Total IBM stockholders’ equity
= 61,538 ÷ 20,597 = 2.99

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. International Business Machines Corp.’s debt to equity ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

International Business Machines Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
Current operating lease liabilities 1,357  1,380  —  —  — 
Noncurrent operating lease liabilities 3,574  3,879  —  —  — 
Total debt (including operating lease liability) 66,469  68,158  45,812  46,824  42,168 
 
Total IBM stockholders’ equity 20,597  20,841  16,796  17,594  18,246 
Solvency Ratio
Debt to equity (including operating lease liability)1 3.23 3.27 2.73 2.66 2.31
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.21 0.00 0.00 0.00 0.00
Adobe Inc. 0.35 0.39 0.44 0.22 0.26
Autodesk Inc. 2.03 0.92
Automatic Data Processing Inc. 0.43 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.42 0.42 0.88 0.81 1.08
Fiserv Inc. 0.66 0.69 2.60 1.79 1.80
Intuit Inc. 0.71 0.12 0.19 0.36 0.86
Mastercard Inc. 2.12 1.58 1.17 0.99 0.92
Microsoft Corp. 0.69 0.84 1.06 1.23 0.76
Oracle Corp. 6.10 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.49 0.32 0.13 0.06 0.00
salesforce.com inc. 0.18 0.22 0.21 0.32 0.36
ServiceNow Inc. 0.75 0.53 0.60 2.01 1.31
Visa Inc. 0.68 0.48 0.49 0.56 0.48
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.90 0.89 0.99 0.99 0.80
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.90 0.84 0.83 0.79 0.65

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total IBM stockholders’ equity
= 66,469 ÷ 20,597 = 3.23

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. International Business Machines Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Debt to Capital

International Business Machines Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
Total IBM stockholders’ equity 20,597  20,841  16,796  17,594  18,246 
Total capital 82,135  83,740  62,608  64,418  60,414 
Solvency Ratio
Debt to capital1 0.75 0.75 0.73 0.73 0.70
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.24 0.28 0.31 0.18 0.20
Autodesk Inc. 1.07 1.11 1.19 0.67 0.48
Automatic Data Processing Inc. 0.26 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.29 0.29 0.47 0.45 0.52
Fiserv Inc. 0.39 0.40 0.72 0.64 0.64
Intuit Inc. 0.40 0.10 0.16 0.26 0.46
Mastercard Inc. 0.66 0.59 0.54 0.50 0.48
Microsoft Corp. 0.38 0.43 0.49 0.55 0.43
Oracle Corp. 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.31 0.23 0.11 0.06 0.00
salesforce.com inc. 0.08 0.18 0.18 0.24 0.26
ServiceNow Inc. 0.37 0.25 0.37 0.67 0.57
Visa Inc. 0.40 0.33 0.33 0.36 0.33
Debt to Capital, Sector
Software & Services 0.45 0.46 0.49 0.50 0.45
Debt to Capital, Industry
Information Technology 0.45 0.45 0.45 0.44 0.39

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 61,538 ÷ 82,135 = 0.75

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. International Business Machines Corp.’s debt to capital ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

International Business Machines Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
Current operating lease liabilities 1,357  1,380  —  —  — 
Noncurrent operating lease liabilities 3,574  3,879  —  —  — 
Total debt (including operating lease liability) 66,469  68,158  45,812  46,824  42,168 
Total IBM stockholders’ equity 20,597  20,841  16,796  17,594  18,246 
Total capital (including operating lease liability) 87,066  88,999  62,608  64,418  60,414 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.76 0.77 0.73 0.73 0.70
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.17 0.00 0.00 0.00 0.00
Adobe Inc. 0.26 0.28 0.31 0.18 0.20
Autodesk Inc. 1.06 1.11 1.19 0.67 0.48
Automatic Data Processing Inc. 0.30 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.29 0.30 0.47 0.45 0.52
Fiserv Inc. 0.40 0.41 0.72 0.64 0.64
Intuit Inc. 0.42 0.10 0.16 0.26 0.46
Mastercard Inc. 0.68 0.61 0.54 0.50 0.48
Microsoft Corp. 0.41 0.46 0.51 0.55 0.43
Oracle Corp. 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.33 0.24 0.11 0.06 0.00
salesforce.com inc. 0.16 0.18 0.18 0.24 0.26
ServiceNow Inc. 0.43 0.35 0.37 0.67 0.57
Visa Inc. 0.40 0.33 0.33 0.36 0.33
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.47 0.47 0.50 0.50 0.45
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.47 0.46 0.45 0.44 0.39

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 66,469 ÷ 87,066 = 0.76

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. International Business Machines Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Debt to Assets

International Business Machines Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
 
Total assets 155,971  152,186  123,382  125,356  117,470 
Solvency Ratio
Debt to assets1 0.39 0.41 0.37 0.37 0.36
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.17 0.20 0.22 0.13 0.15
Autodesk Inc. 0.34 0.44 0.39 0.31 0.27
Automatic Data Processing Inc. 0.05 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.24 0.24 0.38 0.36 0.40
Fiserv Inc. 0.28 0.28 0.53 0.48 0.47
Intuit Inc. 0.31 0.07 0.08 0.12 0.24
Mastercard Inc. 0.38 0.29 0.25 0.25 0.28
Microsoft Corp. 0.24 0.27 0.31 0.37 0.28
Oracle Corp. 0.62 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.13 0.10 0.05 0.02 0.00
salesforce.com inc. 0.06 0.11 0.10 0.14 0.14
ServiceNow Inc. 0.19 0.12 0.17 0.35 0.25
Visa Inc. 0.30 0.23 0.24 0.27 0.25
Debt to Assets, Sector
Software & Services 0.28 0.28 0.29 0.31 0.27
Debt to Assets, Industry
Information Technology 0.29 0.29 0.29 0.30 0.27

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 61,538 ÷ 155,971 = 0.39

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. International Business Machines Corp.’s debt to assets ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

International Business Machines Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Short-term debt 7,183  8,797  10,207  6,987  7,513 
Long-term debt, excluding current maturities 54,355  54,102  35,605  39,837  34,655 
Total debt 61,538  62,899  45,812  46,824  42,168 
Current operating lease liabilities 1,357  1,380  —  —  — 
Noncurrent operating lease liabilities 3,574  3,879  —  —  — 
Total debt (including operating lease liability) 66,469  68,158  45,812  46,824  42,168 
 
Total assets 155,971  152,186  123,382  125,356  117,470 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.43 0.45 0.37 0.37 0.36
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.09 0.00 0.00 0.00 0.00
Adobe Inc. 0.19 0.20 0.22 0.13 0.15
Autodesk Inc. 0.41 0.44 0.39 0.31 0.27
Automatic Data Processing Inc. 0.06 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.25 0.25 0.38 0.36 0.40
Fiserv Inc. 0.29 0.29 0.53 0.48 0.47
Intuit Inc. 0.33 0.07 0.08 0.12 0.24
Mastercard Inc. 0.40 0.32 0.25 0.25 0.28
Microsoft Corp. 0.27 0.30 0.34 0.37 0.28
Oracle Corp. 0.64 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.14 0.11 0.05 0.02 0.00
salesforce.com inc. 0.11 0.11 0.10 0.14 0.14
ServiceNow Inc. 0.24 0.19 0.17 0.35 0.25
Visa Inc. 0.30 0.23 0.24 0.27 0.25
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.31 0.30 0.30 0.31 0.27
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.31 0.30 0.29 0.30 0.27

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 66,469 ÷ 155,971 = 0.43

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. International Business Machines Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Financial Leverage

International Business Machines Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets 155,971  152,186  123,382  125,356  117,470 
Total IBM stockholders’ equity 20,597  20,841  16,796  17,594  18,246 
Solvency Ratio
Financial leverage1 7.57 7.30 7.35 7.12 6.44
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.18 2.07 2.36 2.54 2.73
Adobe Inc. 1.83 1.97 2.00 1.72 1.71
Autodesk Inc. 6.54 3.41
Automatic Data Processing Inc. 6.81 7.76 10.72 9.35 9.74
Fidelity National Information Services Inc. 1.70 1.70 2.33 2.26 2.67
Fiserv Inc. 2.31 2.35 4.91 3.77 3.83
Intuit Inc. 2.14 1.68 2.20 3.00 3.66
Mastercard Inc. 5.25 4.96 4.61 3.90 3.30
Microsoft Corp. 2.55 2.80 3.13 3.33 2.69
Oracle Corp. 9.56 4.99 3.00 2.51 2.37
PayPal Holdings Inc. 3.52 3.04 2.82 2.55 2.25
salesforce.com inc. 1.63 1.97 2.24 2.34 2.55
ServiceNow Inc. 3.07 2.83 3.49 5.82 5.26
Visa Inc. 2.23 2.09 2.04 2.08 1.95
Financial Leverage, Sector
Software & Services 2.94 2.98 3.25 3.17 2.93
Financial Leverage, Industry
Information Technology 2.87 2.81 2.83 2.63 2.44

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Financial leverage = Total assets ÷ Total IBM stockholders’ equity
= 155,971 ÷ 20,597 = 7.57

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. International Business Machines Corp.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Interest Coverage

International Business Machines Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to IBM 5,590  9,431  8,728  5,753  11,872 
Add: Net income attributable to noncontrolling interest 22  25  17  17  16 
Less: Income (loss) from discontinued operations, net of tax 89  (4) (5) (9)
Add: Income tax expense (864) 731  2,619  5,642  449 
Add: Interest expense 1,288  1,344  723  615  630 
Earnings before interest and tax (EBIT) 5,947  11,535  12,082  12,032  12,976 
Solvency Ratio
Interest coverage1 4.62 8.58 16.71 19.56 20.60
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 205.84 273.26 298.26 297.95 345.67
Adobe Inc. 37.00 21.38 32.31 29.73 21.37
Autodesk Inc. 6.46 0.18 -15.15 -16.64 0.40
Automatic Data Processing Inc. 30.72 24.14 22.14 32.64 40.76
Fidelity National Information Services Inc. 1.77 2.04 4.47 3.88 3.25
Fiserv Inc. 2.64 3.19 9.11 8.90 9.72
Intuit Inc. 158.00 126.40 76.15 45.10 35.37
Mastercard Inc. 21.42 44.44 39.73 43.35 60.43
Microsoft Corp. 21.47 17.27 14.35 11.42 16.89
Oracle Corp. 7.13 6.97 7.43 7.47 8.88
PayPal Holdings Inc. 25.23 27.07 31.86 315.29 544.67
salesforce.com inc. 6.39 7.38 3.32 1.29 1.89
ServiceNow Inc. 5.56 3.02 0.26 -1.79 -12.52
Visa Inc. 27.72 28.92 21.92 21.77 19.76
Interest Coverage, Sector
Software & Services 14.55 14.12 14.45 13.61 16.02
Interest Coverage, Industry
Information Technology 16.72 16.24 18.10 17.31 19.12

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,947 ÷ 1,288 = 4.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. International Business Machines Corp.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Fixed Charge Coverage

International Business Machines Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to IBM 5,590  9,431  8,728  5,753  11,872 
Add: Net income attributable to noncontrolling interest 22  25  17  17  16 
Less: Income (loss) from discontinued operations, net of tax 89  (4) (5) (9)
Add: Income tax expense (864) 731  2,619  5,642  449 
Add: Interest expense 1,288  1,344  723  615  630 
Earnings before interest and tax (EBIT) 5,947  11,535  12,082  12,032  12,976 
Add: Operating lease cost 1,581  1,645  1,944  1,821  1,508 
Earnings before fixed charges and tax 7,528  13,180  14,026  13,853  14,484 
 
Interest expense 1,288  1,344  723  615  630 
Operating lease cost 1,581  1,645  1,944  1,821  1,508 
Fixed charges 2,869  2,989  2,667  2,436  2,138 
Solvency Ratio
Fixed charge coverage1 2.62 4.41 5.26 5.69 6.77
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 9.66 10.07 9.63 8.30 10.43
Adobe Inc. 18.77 10.78 13.34 12.26 9.79
Autodesk Inc. 3.09 0.62 -5.16 -4.51 0.78
Automatic Data Processing Inc. 12.22 8.51 7.43 9.05 7.82
Fidelity National Information Services Inc. 1.47 1.75 3.36 3.10 2.66
Fiserv Inc. 2.28 2.56 6.03 5.60 6.08
Intuit Inc. 27.48 34.00 26.91 22.03 17.94
Mastercard Inc. 16.43 31.13 25.01 26.78 33.08
Microsoft Corp. 12.44 10.94 9.45 7.57 9.81
Oracle Corp. 5.68 5.50 6.38 6.39 7.44
PayPal Holdings Inc. 14.51 12.94 14.89 29.95 21.65
salesforce.com inc. 1.68 2.89 1.54 1.08 1.26
ServiceNow Inc. 2.29 1.69 0.61 -0.55 -5.67
Visa Inc. 22.89 19.17 16.32 17.20 15.28
Fixed Charge Coverage, Sector
Software & Services 8.32 8.39 8.33 7.77 8.60
Fixed Charge Coverage, Industry
Information Technology 10.36 10.69 11.65 10.94 11.53

Based on: 10-K (filing date: 2021-02-23), 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).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,528 ÷ 2,869 = 2.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. International Business Machines Corp.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.