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

International Business Machines Corp. (NYSE:IBM)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

International Business Machines Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 3.02 2.73 2.66 2.31 2.80
Debt to equity (including operating lease liability) 3.27 2.73 2.66 2.31 2.80
Debt to capital 0.75 0.73 0.73 0.70 0.74
Debt to capital (including operating lease liability) 0.77 0.73 0.73 0.70 0.74
Debt to assets 0.41 0.37 0.37 0.36 0.36
Debt to assets (including operating lease liability) 0.45 0.37 0.37 0.36 0.36
Financial leverage 7.30 7.35 7.12 6.44 7.75
Coverage Ratios
Interest coverage 8.58 16.71 19.56 20.60 35.09
Fixed charge coverage 4.41 5.26 5.69 6.77 9.21

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).

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. International Business Machines Corp.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. International Business Machines Corp.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Debt to Equity

International Business Machines Corp., debt to equity 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)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
 
Total IBM stockholders’ equity 20,841  16,796  17,594  18,246  14,262 
Solvency Ratio
Debt to equity1 3.02 2.73 2.66 2.31 2.80
Benchmarks
Debt to Equity, Competitors2
Adobe Inc. 0.39 0.44 0.22 0.26 0.27
Alphabet Inc. 0.02 0.02 0.03 0.03 0.04
Autodesk Inc. 2.03 0.92 0.34
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
Intuit Inc. 0.12 0.19 0.36 0.86 0.21
Microsoft Corp. 0.71 0.92 1.19 0.75 0.44
Oracle Corp. 2.58 1.33 1.08 0.93 0.86
salesforce.com inc. 0.20 0.18 0.27 0.26 0.34
ServiceNow Inc. 0.33 0.60 2.01 1.31 0.84
Debt to Equity, Sector
Software & Computer Services 0.43 0.46 0.52 0.43 0.39
Debt to Equity, Industry
Technology 0.56 0.56 0.59 0.48 0.43

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
Debt to equity = Total debt ÷ Total IBM stockholders’ equity
= 62,899 ÷ 20,841 = 3.02

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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
Current operating lease liabilities 1,380  —  —  —  — 
Noncurrent operating lease liabilities 3,879  —  —  —  — 
Total debt (including operating lease liability) 68,158  45,812  46,824  42,168  39,889 
 
Total IBM stockholders’ equity 20,841  16,796  17,594  18,246  14,262 
Solvency Ratio
Debt to equity (including operating lease liability)1 3.27 2.73 2.66 2.31 2.80
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.08 0.02 0.03 0.03 0.04
Autodesk Inc. 2.03 0.92 0.34
Facebook Inc. 0.11 0.00 0.00 0.00 0.00
Intuit Inc. 0.12 0.19 0.36 0.86 0.21
Microsoft Corp. 0.78 1.01 1.19 0.75 0.44
Oracle Corp. 2.58 1.33 1.08 0.93 0.86
salesforce.com inc. 0.20 0.18 0.27 0.26 0.34
ServiceNow Inc. 0.53 0.60 2.01 1.31 0.84
Debt to Equity (including Operating Lease Liability), Sector
Software & Computer Services 0.50 0.47 0.52 0.43 0.39
Debt to Equity (including Operating Lease Liability), Industry
Technology 0.61 0.57 0.59 0.48 0.43

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total IBM stockholders’ equity
= 68,158 ÷ 20,841 = 3.27

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 2017 to 2018 and from 2018 to 2019.

Debt to Capital

International Business Machines Corp., debt to capital 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)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
Total IBM stockholders’ equity 20,841  16,796  17,594  18,246  14,262 
Total capital 83,740  62,608  64,418  60,414  54,151 
Solvency Ratio
Debt to capital1 0.75 0.73 0.73 0.70 0.74
Benchmarks
Debt to Capital, Competitors2
Adobe Inc. 0.28 0.31 0.18 0.20 0.21
Alphabet Inc. 0.02 0.02 0.03 0.03 0.04
Autodesk Inc. 1.11 1.19 0.67 0.48 0.25
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
Intuit Inc. 0.10 0.16 0.26 0.46 0.18
Microsoft Corp. 0.41 0.48 0.54 0.43 0.31
Oracle Corp. 0.72 0.57 0.52 0.48 0.46
salesforce.com inc. 0.17 0.15 0.21 0.21 0.26
ServiceNow Inc. 0.25 0.37 0.67 0.57 0.46
Debt to Capital, Sector
Software & Computer Services 0.30 0.31 0.34 0.30 0.28
Debt to Capital, Industry
Technology 0.36 0.36 0.37 0.33 0.30

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
Debt to capital = Total debt ÷ Total capital
= 62,899 ÷ 83,740 = 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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
Current operating lease liabilities 1,380  —  —  —  — 
Noncurrent operating lease liabilities 3,879  —  —  —  — 
Total debt (including operating lease liability) 68,158  45,812  46,824  42,168  39,889 
Total IBM stockholders’ equity 20,841  16,796  17,594  18,246  14,262 
Total capital (including operating lease liability) 88,999  62,608  64,418  60,414  54,151 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.77 0.73 0.73 0.70 0.74
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.07 0.02 0.03 0.03 0.04
Autodesk Inc. 1.11 1.19 0.67 0.48 0.25
Facebook Inc. 0.10 0.00 0.00 0.00 0.00
Intuit Inc. 0.10 0.16 0.26 0.46 0.18
Microsoft Corp. 0.44 0.50 0.54 0.43 0.31
Oracle Corp. 0.72 0.57 0.52 0.48 0.46
salesforce.com inc. 0.17 0.15 0.21 0.21 0.26
ServiceNow Inc. 0.35 0.37 0.67 0.57 0.46
Debt to Capital (including Operating Lease Liability), Sector
Software & Computer Services 0.34 0.32 0.34 0.30 0.28
Debt to Capital (including Operating Lease Liability), Industry
Technology 0.38 0.36 0.37 0.33 0.30

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 68,158 ÷ 88,999 = 0.77

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 2017 to 2018 and from 2018 to 2019.

Debt to Assets

International Business Machines Corp., debt to assets 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)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
 
Total assets 152,186  123,382  125,356  117,470  110,495 
Solvency Ratio
Debt to assets1 0.41 0.37 0.37 0.36 0.36
Benchmarks
Debt to Assets, Competitors2
Adobe Inc. 0.20 0.22 0.13 0.15 0.16
Alphabet Inc. 0.02 0.02 0.02 0.02 0.04
Autodesk Inc. 0.44 0.39 0.31 0.27 0.15
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
Intuit Inc. 0.07 0.08 0.12 0.24 0.10
Microsoft Corp. 0.25 0.29 0.36 0.28 0.20
Oracle Corp. 0.52 0.44 0.43 0.39 0.38
salesforce.com inc. 0.10 0.08 0.11 0.10 0.13
ServiceNow Inc. 0.12 0.17 0.35 0.25 0.26
Debt to Assets, Sector
Software & Computer Services 0.20 0.22 0.24 0.22 0.20
Debt to Assets, Industry
Technology 0.24 0.25 0.27 0.24 0.22

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
Debt to assets = Total debt ÷ Total assets
= 62,899 ÷ 152,186 = 0.41

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term debt 8,797  10,207  6,987  7,513  6,461 
Long-term debt, excluding current maturities 54,102  35,605  39,837  34,655  33,428 
Total debt 62,899  45,812  46,824  42,168  39,889 
Current operating lease liabilities 1,380  —  —  —  — 
Noncurrent operating lease liabilities 3,879  —  —  —  — 
Total debt (including operating lease liability) 68,158  45,812  46,824  42,168  39,889 
 
Total assets 152,186  123,382  125,356  117,470  110,495 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.45 0.37 0.37 0.36 0.36
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.06 0.02 0.02 0.02 0.04
Autodesk Inc. 0.44 0.39 0.31 0.27 0.15
Facebook Inc. 0.08 0.00 0.00 0.00 0.00
Intuit Inc. 0.07 0.08 0.12 0.24 0.10
Microsoft Corp. 0.28 0.32 0.36 0.28 0.20
Oracle Corp. 0.52 0.44 0.43 0.39 0.38
salesforce.com inc. 0.10 0.08 0.11 0.10 0.13
ServiceNow Inc. 0.19 0.17 0.35 0.25 0.26
Debt to Assets (including Operating Lease Liability), Sector
Software & Computer Services 0.24 0.22 0.24 0.22 0.20
Debt to Assets (including Operating Lease Liability), Industry
Technology 0.26 0.25 0.27 0.24 0.22

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 68,158 ÷ 152,186 = 0.45

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) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Financial Leverage

International Business Machines Corp., financial leverage 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)
Total assets 152,186  123,382  125,356  117,470  110,495 
Total IBM stockholders’ equity 20,841  16,796  17,594  18,246  14,262 
Solvency Ratio
Financial leverage1 7.30 7.35 7.12 6.44 7.75
Benchmarks
Financial Leverage, Competitors2
Adobe Inc. 1.97 2.00 1.72 1.71 1.67
Alphabet Inc. 1.37 1.31 1.29 1.20 1.23
Autodesk Inc. 6.54 3.41 2.21
Facebook Inc. 1.32 1.16 1.14 1.10 1.12
Intuit Inc. 1.68 2.20 3.00 3.66 2.13
Microsoft Corp. 2.80 3.13 3.33 2.69 2.20
Oracle Corp. 4.99 3.00 2.51 2.37 2.28
salesforce.com inc. 1.97 2.24 2.34 2.55 2.69
ServiceNow Inc. 2.83 3.49 5.82 5.26 3.19
Financial Leverage, Sector
Software & Computer Services 2.14 2.10 2.13 1.97 1.94
Financial Leverage, Industry
Technology 2.32 2.27 2.20 2.04 1.99

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
Financial leverage = Total assets ÷ Total IBM stockholders’ equity
= 152,186 ÷ 20,841 = 7.30

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 increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Interest Coverage

International Business Machines Corp., interest coverage 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)
Net income attributable to IBM 9,431  8,728  5,753  11,872  13,190 
Add: Net income attributable to noncontrolling interest 25  17  17  16 
Less: Income (loss) from discontinued operations, net of tax (4) (5) (9) (174)
Add: Income tax expense 731  2,619  5,642  449  2,581 
Add: Interest expense 1,344  723  615  630  468 
Earnings before interest and tax (EBIT) 11,535  12,082  12,032  12,976  16,421 
Solvency Ratio
Interest coverage1 8.58 16.71 19.56 20.60 35.09
Benchmarks
Interest Coverage, Competitors2
Adobe Inc. 21.38 32.31 29.73 21.37 14.61
Alphabet Inc. 397.25 307.25 250.48 195.76 189.95
Autodesk Inc. 0.18 -15.15 -16.64 0.40 7.29
Facebook Inc. 1,241.60 2,818.89 3,433.33 1,252.80 270.30
Intuit Inc. 126.40 76.15 45.10 35.37 27.37
Microsoft Corp. 17.27 14.35 11.42 16.89 24.70
Oracle Corp. 6.97 7.43 7.47 8.88 12.33
salesforce.com inc. 7.38 3.32 1.29 1.89 -1.91
ServiceNow Inc. 3.02 0.26 -1.79 -12.52 -5.21
Interest Coverage, Sector
Software & Computer Services 21.60 22.24 20.26 23.20 28.32
Interest Coverage, Industry
Technology 19.75 21.76 20.41 22.53 35.53

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
Interest coverage = EBIT ÷ Interest expense
= 11,535 ÷ 1,344 = 8.58

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 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

International Business Machines Corp., fixed charge coverage 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)
Net income attributable to IBM 9,431  8,728  5,753  11,872  13,190 
Add: Net income attributable to noncontrolling interest 25  17  17  16 
Less: Income (loss) from discontinued operations, net of tax (4) (5) (9) (174)
Add: Income tax expense 731  2,619  5,642  449  2,581 
Add: Interest expense 1,344  723  615  630  468 
Earnings before interest and tax (EBIT) 11,535  12,082  12,032  12,976  16,421 
Add: Operating lease cost 1,645  1,944  1,821  1,508  1,474 
Earnings before fixed charges and tax 13,180  14,026  13,853  14,484  17,895 
 
Interest expense 1,344  723  615  630  468 
Operating lease cost 1,645  1,944  1,821  1,508  1,474 
Fixed charges 2,989  2,667  2,436  2,138  1,942 
Solvency Ratio
Fixed charge coverage1 4.41 5.26 5.69 6.77 9.21
Benchmarks
Fixed Charge Coverage, Competitors2
Adobe Inc. 10.78 13.34 12.26 9.79 6.56
Alphabet Inc. 17.10 25.69 23.49 24.65 12.49
Autodesk Inc. 0.62 -5.16 -4.51 0.78 2.22
Facebook Inc. 22.41 40.75 56.81 45.87 31.36
Intuit Inc. 34.00 26.91 22.03 17.94 9.28
Microsoft Corp. 10.94 9.45 7.57 9.81 11.46
Oracle Corp. 5.50 6.38 6.39 7.44 9.76
salesforce.com inc. 2.89 1.54 1.08 1.26 0.10
ServiceNow Inc. 1.69 0.61 -0.55 -5.67 -2.64
Fixed Charge Coverage, Sector
Software & Computer Services 10.20 11.16 10.26 11.17 10.86
Fixed Charge Coverage, Industry
Technology 11.68 13.28 12.39 13.10 16.53

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 13,180 ÷ 2,989 = 4.41

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 2017 to 2018 and from 2018 to 2019.