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

International Business Machines Corp. (NYSE:IBM)

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Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

International Business Machines Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin
Operating profit margin
Net profit margin
Return on Investment
Return on equity (ROE)
Return on assets (ROA)

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. International Business Machines Corp.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. International Business Machines Corp.’s operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. International Business Machines Corp.’s net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. International Business Machines Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. International Business Machines Corp.’s ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Gross Profit Margin

International Business Machines Corp., gross profit margin 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)
Gross profit
Revenue
Profitability Ratio
Gross profit margin1
Benchmarks
Gross Profit Margin, Competitors2
Adobe Inc.
Alphabet Inc.
Autodesk Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.

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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. International Business Machines Corp.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

International Business Machines Corp., operating profit margin 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)
Operating income
Revenue
Profitability Ratio
Operating profit margin1
Benchmarks
Operating Profit Margin, Competitors2
Adobe Inc.
Alphabet Inc.
Autodesk Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
Operating Profit Margin, Sector
Software & Computer Services
Operating Profit Margin, Industry
Technology

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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × ÷ =

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. International Business Machines Corp.’s operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Net Profit Margin

International Business Machines Corp., net profit margin 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
Revenue
Profitability Ratio
Net profit margin1
Benchmarks
Net Profit Margin, Competitors2
Adobe Inc.
Alphabet Inc.
Autodesk Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
Net Profit Margin, Sector
Software & Computer Services
Net Profit Margin, Industry
Technology

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
Net profit margin = 100 × Net income attributable to IBM ÷ Revenue
= 100 × ÷ =

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. International Business Machines Corp.’s net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Return on Equity (ROE)

International Business Machines Corp., ROE 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
Total IBM stockholders’ equity
Profitability Ratio
ROE1
Benchmarks
ROE, Competitors2
Adobe Inc.
Alphabet Inc.
Autodesk Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
ROE, Sector
Software & Computer Services
ROE, Industry
Technology

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
ROE = 100 × Net income attributable to IBM ÷ Total IBM stockholders’ equity
= 100 × ÷ =

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. International Business Machines Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Return on Assets (ROA)

International Business Machines Corp., ROA 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
Total assets
Profitability Ratio
ROA1
Benchmarks
ROA, Competitors2
Adobe Inc.
Alphabet Inc.
Autodesk Inc.
Facebook Inc.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
salesforce.com inc.
ServiceNow Inc.
ROA, Sector
Software & Computer Services
ROA, Industry
Technology

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
ROA = 100 × Net income attributable to IBM ÷ Total assets
= 100 × ÷ =

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. International Business Machines Corp.’s ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.