International Business Machines
Financial ratios & Valuation

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
12.809.7512.7523.7611.3412.0419.1520.8577.5419.8632.0511.34
Price/Sales ratio
1.651.571.891.721.241.471.452.082.102.403.291.24
Price/Book Value ratio
12.969.028.307.765.895.455.196.335.796.618.385.89
Price/Cash Flow ratio
9.107.569.178.176.497.695.889.3512.1810.6915.096.49
Price/Free Cash Flow ratio
11.749.7411.8410.198.589.167.0611.4914.8312.2917.308.58
Price/Earnings Growth ratio
-0.620.77-1.63-0.470.201.08-0.4610.07-1.080.05-17.331.08
Dividend Yield
2.79%3.80%3.46%4.02%5.72%5.02%5.41%4.90%4.67%4.05%2.99%5.02%
Profitability Indicator Ratios
Gross Profit Margin
50.01%49.77%47.91%45.77%46.40%47.29%48.32%54.90%54.00%55.44%56.20%46.40%
Operating Profit Margin
20.33%19.47%16.50%14.97%16.69%14.91%8.04%10.44%3.91%14.61%14.70%14.91%
Pretax Profit Margin
21.53%19.50%15.42%14.40%14.25%13.17%6.29%8.43%1.90%14.04%9.98%13.17%
Net Profit Margin
12.95%16.13%14.85%7.26%10.96%12.22%7.59%10.01%2.70%12.12%10.22%12.22%
Effective Tax Rate
21.18%16.18%3.64%49.49%23.09%7.19%-18.63%2.56%-54.15%13.53%-1.98%7.19%
Return on Assets
10.22%11.93%10.10%4.58%7.07%6.19%3.58%4.35%1.28%5.54%4.76%6.19%
Return On Equity
101.29%92.48%65.06%32.69%51.96%45.25%27.13%30.37%7.47%33.29%27.14%45.25%
Return on Capital Employed
24.20%20.88%16.24%13.47%15.60%10.05%5.10%6.09%2.47%8.94%8.72%10.05%
Liquidity Ratios
Current Ratio
1.241.241.201.331.281.010.98N/AN/AN/A1.021.01
Quick Ratio
1.191.191.161.281.240.970.930.820.870.930.970.97
Cash ratio
0.210.220.210.320.290.210.330.190.250.380.450.29
Days of Sales Outstanding
125.20127.50133.5643.3436.2339.5630.8145.9842.2445.5473.8136.23
Days of Inventory outstanding
16.5413.7813.6113.4614.3914.5317.6423.2720.3415.3718.2014.39
Operating Cycle
141.75141.28147.1856.8150.6354.0948.4569.2562.5860.9292.0150.63
Days of Payables Outstanding
54.0153.5854.4454.8656.1143.9538.6955.8153.1054.7243.6043.95
Cash Conversion Cycle
87.7487.7092.731.94-5.4810.149.7613.449.486.1948.41-5.48
Debt Ratios
Debt Ratio
0.340.360.350.370.370.410.390.390.400.410.420.37
Debt Equity Ratio
3.432.792.312.662.723.012.972.732.322.492.343.01
Long-term Debt to Capitalization
0.740.700.650.690.670.720.720.700.670.680.680.67
Total Debt to Capitalization
0.770.730.690.720.730.750.740.730.690.710.700.75
Interest Coverage Ratio
38.9734.0120.9319.2718.377.905.35N/AN/AN/A5.437.90
Cash Flow to Debt Ratio
0.410.420.390.350.330.230.290.240.200.240.230.23
Company Equity Multiplier
9.907.746.437.127.347.307.576.985.796.005.497.30
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.180.200.200.210.190.190.240.220.170.220.210.19
Free Cash Flow / Operating Cash Flow Ratio
0.770.770.770.800.750.830.830.810.820.870.870.75
Cash Flow Coverage Ratio
0.410.420.390.350.330.230.290.240.200.240.230.23
Short Term Coverage Ratio
2.942.632.192.391.491.672.551.892.192.163.091.49
Dividend Payout Ratio
35.76%37.14%44.27%95.70%64.91%60.51%103.70%102.21%362.68%80.51%95.65%64.91%