Microsoft Excel LibreOffice Calc

International Business Machines Corp. (IBM)


Analysis of Long-term (Investment) Activity Ratios

Low level of difficulty


Long-term Activity Ratios (Summary)

International Business Machines Corp., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net fixed asset turnover 7.38 7.12 7.38 7.62 8.62
Total asset turnover 0.65 0.63 0.68 0.74 0.79
Equity turnover 4.74 4.50 4.38 5.73 7.82

Based on: 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), 10-K (filing date: 2015-02-24).

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.’s net fixed asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. International Business Machines Corp.’s total asset turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. International Business Machines Corp.’s equity turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Net Fixed Asset Turnover

International Business Machines Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue 79,591  79,139  79,919  81,741  92,793 
Property, plant and equipment, net 10,792  11,116  10,830  10,727  10,771 
Long-term Activity Ratio
Net fixed asset turnover1 7.38 7.12 7.38 7.62 8.62
Benchmarks
Net Fixed Asset Turnover, Competitors2
Adobe Inc. 8.40 7.79 7.17 6.09 5.28
Alphabet Inc. 2.29 2.62 2.64 2.58 2.76
Facebook Inc. 2.26 2.96 3.22 3.15 3.14
Intuit Inc. 7.34 5.03 4.55 6.15 7.44
Microsoft Corp. 3.75 3.79 4.65 6.35 6.67
Oracle Corp. 6.75 7.10 9.26 10.37 12.50
salesforce.com inc. 5.38 4.69 3.89 4.77 3.28
Net Fixed Asset Turnover, Sector
Software & Computer Services 3.33 3.79 4.24 4.83 5.39
Net Fixed Asset Turnover, Industry
Technology 3.85 4.22 4.70 5.44 5.33

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 79,591 ÷ 10,792 = 7.38

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.’s net fixed asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Total Asset Turnover

International Business Machines Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue 79,591  79,139  79,919  81,741  92,793 
Total assets 123,382  125,356  117,470  110,495  117,532 
Long-term Activity Ratio
Total asset turnover1 0.65 0.63 0.68 0.74 0.79
Benchmarks
Total Asset Turnover, Competitors2
Adobe Inc. 0.48 0.50 0.46 0.41 0.38
Alphabet Inc. 0.59 0.56 0.54 0.51 0.50
Facebook Inc. 0.57 0.48 0.43 0.36 0.31
Intuit Inc. 1.15 1.27 1.10 0.84 0.87
Microsoft Corp. 0.43 0.37 0.44 0.53 0.50
Oracle Corp. 0.29 0.28 0.33 0.34 0.42
salesforce.com inc. 0.50 0.48 0.52 0.50 0.44
Total Asset Turnover, Sector
Software & Computer Services 0.50 0.46 0.49 0.52 0.54
Total Asset Turnover, Industry
Technology 0.57 0.49 0.53 0.58 0.59

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Total asset turnover = Revenue ÷ Total assets
= 79,591 ÷ 123,382 = 0.65

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.’s total asset turnover ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Equity Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue 79,591  79,139  79,919  81,741  92,793 
Total IBM stockholders’ equity 16,796  17,594  18,246  14,262  11,868 
Long-term Activity Ratio
Equity turnover1 4.74 4.50 4.38 5.73 7.82
Benchmarks
Equity Turnover, Competitors2
Adobe Inc. 0.96 0.86 0.79 0.68 0.61
Alphabet Inc. 0.77 0.73 0.65 0.62 0.63
Facebook Inc. 0.66 0.55 0.47 0.41 0.35
Intuit Inc. 2.53 3.82 4.04 1.80 1.46
Microsoft Corp. 1.33 1.24 1.19 1.17 0.97
Oracle Corp. 0.87 0.70 0.78 0.79 0.82
salesforce.com inc. 1.12 1.12 1.33 1.35 1.34
Equity Turnover, Sector
Software & Computer Services 1.05 0.98 0.97 1.00 1.02
Equity Turnover, Industry
Technology 1.31 1.08 1.07 1.16 1.10

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Equity turnover = Revenue ÷ Total IBM stockholders’ equity
= 79,591 ÷ 16,796 = 4.74

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.’s equity turnover ratio improved from 2016 to 2017 and from 2017 to 2018.