Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

International Business Machines Corp., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 2.74 2.99 3.02 2.73 2.66
Debt to equity (including operating lease liability) 2.92 3.23 3.27 2.73 2.66
Debt to capital 0.73 0.75 0.75 0.73 0.73
Debt to capital (including operating lease liability) 0.74 0.76 0.77 0.73 0.73
Debt to assets 0.39 0.39 0.41 0.37 0.37
Debt to assets (including operating lease liability) 0.42 0.43 0.45 0.37 0.37
Financial leverage 6.98 7.57 7.30 7.35 7.12
Coverage Ratios
Interest coverage 5.20 4.62 8.58 16.71 19.56
Fixed charge coverage 3.13 2.62 4.41 5.26 5.69

Based on: 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).

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. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
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. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. International Business Machines Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
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. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. International Business Machines Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
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. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. International Business Machines Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. International Business Machines Corp. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. International Business Machines Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Debt to Equity

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
 
Total IBM stockholders’ equity 18,901 20,597 20,841 16,796 17,594
Solvency Ratio
Debt to equity1 2.74 2.99 3.02 2.73 2.66
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.28 0.31 0.39 0.44 0.22
Intuit Inc. 0.21 0.66 0.12 0.19 0.36
Mastercard Inc. 1.90 1.98 1.45 1.17 0.99
Microsoft Corp. 0.50 0.62 0.77 0.97 1.23
Oracle Corp. 16.08 5.93 2.58 1.33 1.08
PayPal Holdings Inc. 0.42 0.45 0.29 0.13 0.06
Salesforce Inc. 0.07 0.09 0.22 0.21 0.32
ServiceNow Inc. 0.43 0.58 0.33 0.60 2.01
Visa Inc. 0.56 0.66 0.48 0.49 0.56
Debt to Equity, Sector
Software & Services 0.81 0.92 0.95 0.94 1.00
Debt to Equity, Industry
Information Technology 0.76 0.87 0.84 0.79 0.78

Based on: 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).

1 2021 Calculation
Debt to equity = Total debt ÷ Total IBM stockholders’ equity
= 51,704 ÷ 18,901 = 2.74

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. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
Current operating lease liabilities 974 1,357 1,380
Noncurrent operating lease liabilities 2,462 3,574 3,879
Total debt (including operating lease liability) 55,140 66,469 68,158 45,812 46,824
 
Total IBM stockholders’ equity 18,901 20,597 20,841 16,796 17,594
Solvency Ratio
Debt to equity (including operating lease liability)1 2.92 3.23 3.27 2.73 2.66
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.18 0.21 0.00 0.00 0.00
Adobe Inc. 0.32 0.35 0.39 0.44 0.22
Intuit Inc. 0.25 0.71 0.12 0.19 0.36
Mastercard Inc. 2.01 2.12 1.58 1.17 0.99
Microsoft Corp. 0.58 0.69 0.84 1.06 1.23
Oracle Corp. 16.61 6.10 2.58 1.33 1.08
PayPal Holdings Inc. 0.45 0.49 0.32 0.13 0.06
Salesforce Inc. 0.15 0.18 0.22 0.21 0.32
ServiceNow Inc. 0.60 0.75 0.53 0.60 2.01
Visa Inc. 0.57 0.68 0.48 0.49 0.56
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.90 1.02 1.01 0.97 1.00
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.82 0.93 0.87 0.81 0.78

Based on: 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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total IBM stockholders’ equity
= 55,140 ÷ 18,901 = 2.92

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. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
Total IBM stockholders’ equity 18,901 20,597 20,841 16,796 17,594
Total capital 70,605 82,135 83,740 62,608 64,418
Solvency Ratio
Debt to capital1 0.73 0.75 0.75 0.73 0.73
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.22 0.24 0.28 0.31 0.18
Intuit Inc. 0.17 0.40 0.10 0.16 0.26
Mastercard Inc. 0.66 0.66 0.59 0.54 0.50
Microsoft Corp. 0.33 0.38 0.43 0.49 0.55
Oracle Corp. 0.94 0.86 0.72 0.57 0.52
PayPal Holdings Inc. 0.29 0.31 0.23 0.11 0.06
Salesforce Inc. 0.06 0.08 0.18 0.18 0.24
ServiceNow Inc. 0.30 0.37 0.25 0.37 0.67
Visa Inc. 0.36 0.40 0.33 0.33 0.36
Debt to Capital, Sector
Software & Services 0.45 0.48 0.49 0.49 0.50
Debt to Capital, Industry
Information Technology 0.43 0.46 0.46 0.44 0.44

Based on: 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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 51,704 ÷ 70,605 = 0.73

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. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
Current operating lease liabilities 974 1,357 1,380
Noncurrent operating lease liabilities 2,462 3,574 3,879
Total debt (including operating lease liability) 55,140 66,469 68,158 45,812 46,824
Total IBM stockholders’ equity 18,901 20,597 20,841 16,796 17,594
Total capital (including operating lease liability) 74,041 87,066 88,999 62,608 64,418
Solvency Ratio
Debt to capital (including operating lease liability)1 0.74 0.76 0.77 0.73 0.73
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.17 0.00 0.00 0.00
Adobe Inc. 0.24 0.26 0.28 0.31 0.18
Intuit Inc. 0.20 0.42 0.10 0.16 0.26
Mastercard Inc. 0.67 0.68 0.61 0.54 0.50
Microsoft Corp. 0.37 0.41 0.46 0.51 0.55
Oracle Corp. 0.94 0.86 0.72 0.57 0.52
PayPal Holdings Inc. 0.31 0.33 0.24 0.11 0.06
Salesforce Inc. 0.13 0.16 0.18 0.18 0.24
ServiceNow Inc. 0.37 0.43 0.35 0.37 0.67
Visa Inc. 0.36 0.40 0.33 0.33 0.36
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.47 0.50 0.50 0.49 0.50
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.45 0.48 0.47 0.45 0.44

Based on: 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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 55,140 ÷ 74,041 = 0.74

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. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
 
Total assets 132,001 155,971 152,186 123,382 125,356
Solvency Ratio
Debt to assets1 0.39 0.39 0.41 0.37 0.37
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.15 0.17 0.20 0.22 0.13
Intuit Inc. 0.13 0.31 0.07 0.08 0.12
Mastercard Inc. 0.37 0.38 0.29 0.25 0.25
Microsoft Corp. 0.21 0.24 0.27 0.31 0.37
Oracle Corp. 0.64 0.62 0.52 0.44 0.43
PayPal Holdings Inc. 0.12 0.13 0.10 0.05 0.02
Salesforce Inc. 0.04 0.06 0.11 0.10 0.14
ServiceNow Inc. 0.15 0.19 0.12 0.17 0.35
Visa Inc. 0.25 0.30 0.23 0.24 0.27
Debt to Assets, Sector
Software & Services 0.27 0.30 0.30 0.30 0.32
Debt to Assets, Industry
Information Technology 0.28 0.30 0.30 0.29 0.30

Based on: 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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 51,704 ÷ 132,001 = 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. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 6,787 7,183 8,797 10,207 6,987
Long-term debt, excluding current maturities 44,917 54,355 54,102 35,605 39,837
Total debt 51,704 61,538 62,899 45,812 46,824
Current operating lease liabilities 974 1,357 1,380
Noncurrent operating lease liabilities 2,462 3,574 3,879
Total debt (including operating lease liability) 55,140 66,469 68,158 45,812 46,824
 
Total assets 132,001 155,971 152,186 123,382 125,356
Solvency Ratio
Debt to assets (including operating lease liability)1 0.42 0.43 0.45 0.37 0.37
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.08 0.09 0.00 0.00 0.00
Adobe Inc. 0.17 0.19 0.20 0.22 0.13
Intuit Inc. 0.16 0.33 0.07 0.08 0.12
Mastercard Inc. 0.39 0.40 0.32 0.25 0.25
Microsoft Corp. 0.25 0.27 0.30 0.34 0.37
Oracle Corp. 0.66 0.64 0.52 0.44 0.43
PayPal Holdings Inc. 0.13 0.14 0.11 0.05 0.02
Salesforce Inc. 0.10 0.11 0.11 0.10 0.14
ServiceNow Inc. 0.21 0.24 0.19 0.17 0.35
Visa Inc. 0.26 0.30 0.23 0.24 0.27
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.30 0.32 0.32 0.31 0.32
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.30 0.32 0.31 0.29 0.30

Based on: 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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 55,140 ÷ 132,001 = 0.42

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. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 132,001 155,971 152,186 123,382 125,356
Total IBM stockholders’ equity 18,901 20,597 20,841 16,796 17,594
Solvency Ratio
Financial leverage1 6.98 7.57 7.30 7.35 7.12
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.21 2.18 2.07 2.36 2.54
Adobe Inc. 1.84 1.83 1.97 2.00 1.72
Intuit Inc. 1.57 2.14 1.68 2.20 3.00
Mastercard Inc. 5.15 5.25 4.96 4.61 3.90
Microsoft Corp. 2.35 2.55 2.80 3.13 3.33
Oracle Corp. 25.03 9.56 4.99 3.00 2.51
PayPal Holdings Inc. 3.49 3.52 3.04 2.82 2.55
Salesforce Inc. 1.60 1.63 1.97 2.24 2.34
ServiceNow Inc. 2.92 3.07 2.83 3.49 5.82
Visa Inc. 2.21 2.23 2.09 2.04 2.08
Financial Leverage, Sector
Software & Services 2.97 3.13 3.19 3.14 3.08
Financial Leverage, Industry
Information Technology 2.73 2.91 2.85 2.74 2.57

Based on: 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).

1 2021 Calculation
Financial leverage = Total assets ÷ Total IBM stockholders’ equity
= 132,001 ÷ 18,901 = 6.98

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. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Interest Coverage

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to IBM 5,743 5,590 9,431 8,728 5,753
Add: Net income attributable to noncontrolling interest 19 22 25 17 17
Less: Income (loss) from discontinued operations, net of tax 1,031 89 (4) 5 (5)
Add: Income tax expense 125 (864) 731 2,619 5,642
Add: Interest expense 1,155 1,288 1,344 723 615
Earnings before interest and tax (EBIT) 6,011 5,947 11,535 12,082 12,032
Solvency Ratio
Interest coverage1 5.20 4.62 8.58 16.71 19.56
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 131.46 205.84 273.26 298.26 297.95
Adobe Inc. 51.49 37.00 21.38 32.31 29.73
Intuit Inc. 89.14 158.00 126.40 76.15 45.10
Mastercard Inc. 24.91 21.42 44.44 39.73 43.35
Microsoft Corp. 31.31 21.47 17.27 14.35 11.42
Oracle Corp. 6.28 7.13 6.97 7.43 7.47
PayPal Holdings Inc. 18.67 25.23 27.07 31.86 315.29
Salesforce Inc. 21.33 6.39 7.38 3.32 1.29
ServiceNow Inc. 9.89 5.56 3.02 0.26 -1.79
Visa Inc. 32.31 27.72 28.92 21.92 21.77
Interest Coverage, Sector
Software & Services 19.39 16.13 15.43 15.12 14.27
Interest Coverage, Industry
Information Technology 23.33 17.28 16.67 18.21 17.30

Based on: 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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,011 ÷ 1,155 = 5.20

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. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Fixed Charge Coverage

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to IBM 5,743 5,590 9,431 8,728 5,753
Add: Net income attributable to noncontrolling interest 19 22 25 17 17
Less: Income (loss) from discontinued operations, net of tax 1,031 89 (4) 5 (5)
Add: Income tax expense 125 (864) 731 2,619 5,642
Add: Interest expense 1,155 1,288 1,344 723 615
Earnings before interest and tax (EBIT) 6,011 5,947 11,535 12,082 12,032
Add: Operating lease cost 1,126 1,581 1,645 1,944 1,821
Earnings before fixed charges and tax 7,137 7,528 13,180 14,026 13,853
 
Interest expense 1,155 1,288 1,344 723 615
Operating lease cost 1,126 1,581 1,645 1,944 1,821
Fixed charges 2,281 2,869 2,989 2,667 2,436
Solvency Ratio
Fixed charge coverage1 3.13 2.62 4.41 5.26 5.69
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 10.41 9.66 10.07 9.63 8.30
Adobe Inc. 25.59 18.77 10.78 13.34 12.26
Intuit Inc. 25.58 27.48 34.00 26.91 22.03
Mastercard Inc. 19.64 16.43 31.13 25.01 26.78
Microsoft Corp. 16.90 12.44 10.94 9.45 7.57
Oracle Corp. 5.17 5.68 5.50 6.38 6.39
PayPal Holdings Inc. 11.20 14.51 12.94 14.89 29.95
Salesforce Inc. 2.92 1.68 2.89 1.54 1.08
ServiceNow Inc. 2.95 2.29 1.69 0.61 -0.55
Visa Inc. 26.74 22.89 19.17 16.32 17.20
Fixed Charge Coverage, Sector
Software & Services 10.81 8.96 9.04 8.70 8.13
Fixed Charge Coverage, Industry
Information Technology 13.99 10.72 11.05 11.88 11.12

Based on: 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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,137 ÷ 2,281 = 3.13

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. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.