International Business Machines Balance Sheet Health
Financial Health criteria checks 4/6
International Business Machines has a total shareholder equity of $24.5B and total debt of $55.7B, which brings its debt-to-equity ratio to 227.1%. Its total assets and total liabilities are $134.3B and $109.8B respectively. International Business Machines's EBIT is $10.0B making its interest coverage ratio 10.5. It has cash and short-term investments of $13.7B.
Key information
227.1%
Debt to equity ratio
US$55.70b
Debt
Interest coverage ratio
10.5x
Cash
US$13.70b
Equity
US$24.53b
Total liabilities
US$109.81b
Total assets
US$134.34b
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: IBM's short term assets ($30.5B) exceed its short term liabilities ($28.9B).
Long Term Liabilities: IBM's short term assets ($30.5B) do not cover its long term liabilities ($81.0B).
Debt to Equity History and Analysis
Debt Level: IBM's net debt to equity ratio (171.2%) is considered high.
Reducing Debt: IBM's debt to equity ratio has reduced from 365.7% to 227.1% over the past 5 years.
Debt Coverage: IBM's debt is well covered by operating cash flow (24.4%).
Interest Coverage: IBM's interest payments on its debt are well covered by EBIT (10.5x coverage).