Does IBM have a lot of debt? (2024)

Does IBM have a lot of debt?

Total debt on the balance sheet as of December 2023 : $59.93 B. According to IBM's latest financial reports the company's total debt is $59.93 B. A company's total debt is the sum of all current and non-current debts.

Does IBM have too much debt?

International Business Machines has a debt to EBITDA ratio of 3.2, which signals significant debt, but is still pretty reasonable for most types of business. But its EBIT was about 10.0 times its interest expense, implying the company isn't really paying a high cost to maintain that level of debt.

Is IBM debt free?

IBM's free cash flow was $11.2 billion, up $1.9 billion year to year. IBM ended the fourth quarter with $13.5 billion of cash and marketable securities, up $4.6 billion from year-end 2022. Debt, including IBM Financing debt of $11.9 billion, totaled $56.5 billion, up $5.6 billion since the end of 2022.

What is the net debt of IBM?

IBM annual net long-term debt for 2023 was $4.504B, a 348.61% increase from 2022. IBM annual net long-term debt for 2022 was $1.004B, a 112.43% decline from 2021. IBM annual net long-term debt for 2021 was $-8.075B, a 182.24% increase from 2020.

What is the financial leverage of IBM?

International Business Machines's financial leverage hit its 5-year low in December 2022 of 5.8x. International Business Machines's financial leverage decreased in 2019 (7.3x, -0.6%), 2021 (7.0x, -7.8%), and 2022 (5.8x, -17.0%) and increased in 2020 (7.6x, +3.7%) and 2023 (6.0x, +3.5%).

Is IBM financially stable?

Companies with rank of 3 or less are likely in financial distress. International Business Machines has the Financial Strength Rank of 5.

Why is IBM in decline?

IBM has a long-standing history as a pioneer in mainframe computers. However, with the advent of Personal Computers (PCs), the business suffered a significant decline. IBM has shifted its focus towards a new "platform" business, centered around hybrid cloud and Artificial Intelligence (AI).

Why does IBM have so much debt?

Declining revenue and rising operating expenses have constrained IBM's cash flow, so the company has struggled to reduce its debt and improve its financial leverage IBM's high debt burden constrains the company's financial recovery and long-term growth.

Is IBM a profitable company?

IBM annual gross profit for 2023 was $34.3B, a 4.93% increase from 2022. IBM annual gross profit for 2022 was $32.688B, a 3.82% increase from 2021. IBM annual gross profit for 2021 was $31.485B, a 2.01% increase from 2020.

What is the IBM stock scandal?

The April 2022 securities fraud lawsuit filed against IBM claimed the company's decision to tie CAMSS revenue to bonuses led executives and similarly incentivized employees to misclassify revenue from various products as CAMSS sales, fraudulently, in an effort to enhance their compensation.

Who owns the most IBM stock?

Vanguard owns the most shares of International Business Machines (IBM). The ownership structure can impact the company's decision making, as large institutional investors may exert influence on the company's management and can also affect the company's stock price with their buying and selling patterns.

How rich is IBM?

Market cap: $170.42 Billion

As of April 2024 IBM has a market cap of $170.42 Billion. This makes IBM the world's 73th most valuable company by market cap according to our data.

How does IBM still make money?

Software has become IBM's single biggest source of revenue as the company turns up the heat on hybrid cloud computing. Its consulting business is still sizable, but it's a distant second now, with infrastructure (hardware) running a close third in terms of sales.

Is IBM a good stock to buy now?

IBM Analyst Recommendation Trends

In the current month, IBM has received 8 Buy Ratings, 11 Hold Ratings, and 4 Sell Ratings. IBM average Analyst price target in the past 3 months is $191.69.

Who is IBM's biggest competitor?

With a diverse product and service portfolio, many of the most significant IBM competitors can be found in the services industry. These include Hewlett Packard Enterprise, Tata Consultancy Services, and Accenture. IBM is also up against giants such as Adobe, Microsoft, and Amazon in software production.

What is IBM's biggest product?

IBM sells software, offers consulting services, and provides hybrid cloud infrastructure solutions. The Software segment is IBM's biggest source of revenue and profits. IBM strives to be a leading provider in the hybrid cloud and AI.

Does IBM have a future?

IBM has prioritized capitalizing on the growth of the worldwide hybrid cloud computing market. The company's new business model is monetizing every aspect of what customers need once they adopt an IBM cloud or AI computing platform. IBM's cash-flow growth is much greater than its overall sales growth.

Are IBM employees happy?

How satisfied are employees working at IBM? 83% of IBM employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated IBM 4.1 out of 5 for work life balance, 4.2 for culture and values and 4.0 for career opportunities.

Is IBM a buy or hold?

Out of 10 analysts, 2 (20%) are recommending IBM as a Strong Buy, 2 (20%) are recommending IBM as a Buy, 5 (50%) are recommending IBM as a Hold, 0 (0%) are recommending IBM as a Sell, and 1 (10%) are recommending IBM as a Strong Sell. If you're new to stock investing, here's how to buy IBM stock.

What problems are IBM facing?

Is IBM still doing well?

Despite its relative decline within the technology sector, IBM remains the seventh largest technology company by revenue, and 67th largest overall company by revenue in the United States. It is also consistently ranked among the world's most recognizable, valuable, and admired brands.

Is IBM laying off employees?

IBM has joined list of 204 tech companies who announced job cuts this year. As per Layoffs. fyi website, so far 204 tech companies have cut jobs affecting 49,978 employees.

What company has the most debt?

As of February 2023, the Japanese car manufacturer Toyota was the company with the highest debt worldwide, amounting to 217 billion U.S. dollars. The Chinese property developer Evergrande followed in second with a debt of roughly 170 billion U.S. dollars, with Volkswagen following in third.

Is IBM recession proof?

No company is entirely recession-proof. As businesses cut costs where they can, IBM will certainly see some softening of demand if economies enter a recession. The good news is that IBM is in a great position to weather the storm for a few reasons. First, the company has almost no exposure to consumers.

How much cash does IBM have?

Cash on Hand as of December 2023 : $13.44 B

According to IBM's latest financial reports the company has $13.44 B in cash and cash equivalents. A company's cash on hand also refered as cash/cash equivalents (CCE) and Short-term investments, is the amount of accessible money a business has.