Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
International Business Machines Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | International Business Machines Corp. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | International Business Machines Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | International Business Machines Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | International Business Machines Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover
International Business Machines Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 61,860) | 60,530) | 57,350) | 73,620) | 77,147) | |
| Property, plant and equipment, net | 5,501) | 5,334) | 5,694) | 10,040) | 10,010) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 11.25 | 11.35 | 10.07 | 7.33 | 7.71 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 41.90 | 37.12 | 30.83 | 28.68 | 31.06 | |
| Adobe Inc. | 9.56 | 9.23 | 9.44 | 8.48 | 8.64 | |
| Autodesk Inc. | 34.76 | 26.99 | 19.66 | 20.25 | 17.17 | |
| Cadence Design Systems Inc. | 10.14 | 9.59 | 9.77 | 8.62 | 8.47 | |
| CrowdStrike Holdings Inc. | 4.55 | 5.57 | 5.24 | 3.54 | — | |
| Intuit Inc. | 14.83 | 14.33 | 12.35 | 10.46 | 8.70 | |
| Microsoft Corp. | 2.22 | 2.66 | 2.81 | 3.24 | 3.45 | |
| Oracle Corp. | 2.93 | 4.37 | 5.74 | 6.26 | 6.32 | |
| Palo Alto Networks Inc. | 19.44 | 15.38 | 13.37 | 9.79 | 9.80 | |
| Salesforce Inc. | 8.47 | 9.41 | 8.64 | 7.20 | 6.48 | |
| ServiceNow Inc. | 6.61 | 6.88 | 7.70 | 6.85 | 7.39 | |
| Synopsys Inc. | 10.48 | 10.51 | 8.90 | 7.62 | 7.82 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | 3.75 | 4.50 | 4.74 | 5.18 | 5.54 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 3.52 | 4.14 | 4.45 | 4.24 | 4.29 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 61,860 ÷ 5,501 = 11.25
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | International Business Machines Corp. net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
International Business Machines Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 61,860) | 60,530) | 57,350) | 73,620) | 77,147) | |
| Property, plant and equipment, net | 5,501) | 5,334) | 5,694) | 10,040) | 10,010) | |
| Operating right-of-use assets, net | 3,220) | 2,878) | 3,222) | 4,686) | 4,996) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 8,721) | 8,212) | 8,916) | 14,726) | 15,006) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.09 | 7.37 | 6.43 | 5.00 | 5.14 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | 15.38 | 13.17 | 10.48 | 9.37 | 31.06 | |
| Adobe Inc. | 8.13 | 7.61 | 7.46 | 6.42 | 8.64 | |
| Autodesk Inc. | 12.87 | 9.39 | 6.22 | 5.45 | 17.17 | |
| Cadence Design Systems Inc. | 7.38 | 6.57 | 6.85 | 6.04 | 6.21 | |
| CrowdStrike Holdings Inc. | 4.21 | 4.97 | 4.30 | 3.54 | — | |
| Intuit Inc. | 9.99 | 8.86 | 8.30 | 8.00 | 8.70 | |
| Microsoft Corp. | 1.93 | 2.26 | 2.37 | 2.70 | 2.87 | |
| Oracle Corp. | 2.31 | 3.21 | 4.20 | 4.74 | 6.32 | |
| Palo Alto Networks Inc. | 11.16 | 9.17 | 7.32 | 5.62 | 9.80 | |
| Salesforce Inc. | 4.76 | 4.65 | 3.75 | 3.16 | 6.48 | |
| ServiceNow Inc. | 4.33 | 4.18 | 4.34 | 4.06 | 3.98 | |
| Synopsys Inc. | 5.19 | 4.87 | 4.35 | 3.88 | 7.82 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | 3.03 | 3.50 | 3.59 | 3.83 | 4.56 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.09 | 3.59 | 3.79 | 3.60 | 4.00 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 61,860 ÷ 8,721 = 7.09
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | International Business Machines Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Total Asset Turnover
International Business Machines Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 61,860) | 60,530) | 57,350) | 73,620) | 77,147) | |
| Total assets | 135,241) | 127,243) | 132,001) | 155,971) | 152,186) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.46 | 0.48 | 0.43 | 0.47 | 0.51 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 1.25 | 1.30 | 1.17 | 1.20 | 1.45 | |
| Adobe Inc. | 0.65 | 0.65 | 0.58 | 0.53 | 0.54 | |
| Autodesk Inc. | 0.53 | 0.51 | 0.52 | 0.53 | 0.54 | |
| Cadence Design Systems Inc. | 0.72 | 0.69 | 0.68 | 0.68 | 0.70 | |
| CrowdStrike Holdings Inc. | 0.45 | 0.40 | 0.32 | 0.34 | — | |
| Intuit Inc. | 0.52 | 0.46 | 0.62 | 0.70 | 1.08 | |
| Microsoft Corp. | 0.51 | 0.54 | 0.50 | 0.47 | 0.44 | |
| Oracle Corp. | 0.37 | 0.39 | 0.31 | 0.34 | 0.36 | |
| Palo Alto Networks Inc. | 0.48 | 0.45 | 0.42 | 0.38 | 0.44 | |
| Salesforce Inc. | 0.32 | 0.28 | 0.32 | 0.31 | 0.43 | |
| ServiceNow Inc. | 0.52 | 0.54 | 0.55 | 0.52 | 0.57 | |
| Synopsys Inc. | 0.57 | 0.54 | 0.48 | 0.46 | 0.52 | |
| Total Asset Turnover, Sector | ||||||
| Software & Services | 0.51 | 0.53 | 0.49 | 0.48 | 0.50 | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.59 | 0.63 | 0.61 | 0.57 | 0.58 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 61,860 ÷ 135,241 = 0.46
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | International Business Machines Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Equity Turnover
International Business Machines Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 61,860) | 60,530) | 57,350) | 73,620) | 77,147) | |
| Total IBM stockholders’ equity | 22,533) | 21,944) | 18,901) | 20,597) | 20,841) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.75 | 2.76 | 3.03 | 3.57 | 3.70 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | 2.50 | 2.79 | 2.59 | 2.61 | 3.00 | |
| Adobe Inc. | 1.18 | 1.25 | 1.07 | 0.97 | 1.06 | |
| Autodesk Inc. | 4.37 | 5.17 | 3.93 | — | — | |
| Cadence Design Systems Inc. | 1.20 | 1.30 | 1.09 | 1.08 | 1.11 | |
| CrowdStrike Holdings Inc. | 1.53 | 1.42 | 1.00 | 0.65 | — | |
| Intuit Inc. | 0.83 | 0.77 | 0.98 | 1.50 | 1.81 | |
| Microsoft Corp. | 1.03 | 1.19 | 1.18 | 1.21 | 1.23 | |
| Oracle Corp. | 46.56 | — | 7.73 | 3.24 | 1.81 | |
| Palo Alto Networks Inc. | 3.94 | 26.20 | 6.71 | 3.09 | 1.83 | |
| Salesforce Inc. | 0.54 | 0.46 | 0.51 | 0.50 | 0.85 | |
| ServiceNow Inc. | 1.18 | 1.44 | 1.60 | 1.59 | 1.63 | |
| Synopsys Inc. | 0.95 | 0.92 | 0.79 | 0.75 | 0.82 | |
| Equity Turnover, Sector | ||||||
| Software & Services | 1.32 | 1.45 | 1.45 | 1.53 | 1.67 | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.44 | 1.60 | 1.66 | 1.64 | 1.65 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Revenue ÷ Total IBM stockholders’ equity
= 61,860 ÷ 22,533 = 2.75
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | International Business Machines Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |