International Business Machines has a Cash Ratio of 0.29. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for International Business Machines's Cash Ratio or its related term are showing as below:
XSWX:IBM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.22 Med: 0.35 Max: 1.09
Current: 0.29
During the past 13 years, International Business Machines's highest Cash Ratio was 1.09. The lowest was 0.22. And the median was 0.35.
XSWX:IBM's Cash Ratio is ranked worse than 75.04% of 2805
companies
in the Software industry
Industry Median: 0.79
vs XSWX:IBM: 0.29
International Business Machines (XSWX:IBM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
International Business Machines Cash Ratio Related Terms
International Business Machines Cash Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, International Business Machines's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines Cash Ratio vs Software Industry
For the Software industry and Technology sector, International Business Machines's Cash Ratio distribution charts can be found below:
* The bar in red indicates where International Business Machines's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Business Machines (XSWX:IBM) has a Cash Ratio of 0.29 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on International Business Machines and its competitors. This is 17% below median its historical median of 0.35. Over the past decade, International Business Machines' Cash Ratio has ranged from 0.22 to 1.09. According to the industry distribution chart, International Business Machines ranks #2105 out of 2805 companies in the Software industry, placing it in the top 75%.
Is International Business Machines' Cash Ratio too high?
International Business Machines' current Cash Ratio of 0.29 is 17% below median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 1.09. The Software industry median Cash Ratio is 0.79. International Business Machines' value of 0.29 is 63.3% below this industry median. Based on the distribution chart, International Business Machines ranks #2105 out of 2805 companies in the Software industry, which is below the industry midpoint. Overall, International Business Machines has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Cash Ratio compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #2105 out of 2805 companies for Cash Ratio. This places International Business Machines in the lower half of its industry. The industry median Cash Ratio is 0.79. International Business Machines' value of 0.29 is 63.3% below this benchmark. Historically, International Business Machines' own Cash Ratio has ranged from 0.22 to 1.09 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 0.79, International Business Machines has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.79, based on 2,805 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Cash Ratio of 0.29 is 63.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on International Business Machines and its competitors. For the Software industry, the median Cash Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Cash Ratio is 0.29, which is 17% below median its own 10-year median of 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (XSWX:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF187.83, compared to a current price of CHF230.15 — trading 22.5% above its estimated fair value. The current Cash Ratio is 0.29, which is 17% below median its 10-year median of 0.35 and 63.3% below the Software industry median of 0.79. International Business Machines' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current Cash Ratio is 0.29 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Business Machines (XSWX:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of CHF230.15 is trading 22.5% above its estimated GF Value™ of CHF187.83.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XSWX:IBM:
Cash Ratio: 0.29 (17% below median its 10-year median of 0.35)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 63.3% below the Software median (#2105 of 2805)
No single metric tells the full story. See the XSWX:IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Business Machines Business Description
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
69GF Score
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