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Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. International Business Machines's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.13.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, International Business Machinescouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for International Business Machines's Cash-to-Debt or its related term are showing as below:
XSWX:IBM'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.13 Med: 0.22 Max: 0.59
Current: 0.13
During the past 13 years, International Business Machines's highest Cash to Debt Ratio was 0.59. The lowest was 0.13. And the median was 0.22.
XSWX:IBM's Cash-to-Debt is ranked worse than 91.12% of 2827
companies
in the Software industry
Industry Median: 2.57
vs XSWX:IBM: 0.13
International Business Machines (XSWX:IBM) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
International Business Machines Cash-to-Debt Related Terms
International Business Machines Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
International Business Machines Cash-to-Debt Chart
XSWX:IBM vs ACN, FISV, CTSH: Cash-to-Debt Comparison
For the Information Technology Services subindustry, International Business Machines's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Software Industry
For the Software industry and Technology sector, International Business Machines's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where International Business Machines's Cash-to-Debt 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-to-Debt of 0.13 as of Jun. 2026. This is 41% below median its historical median of 0.22. Over the past decade, International Business Machines' Cash-to-Debt has ranged from 0.13 to 0.59. According to the industry distribution chart, International Business Machines ranks #2576 out of 2827 companies in the Software industry, placing it in the top 91.1%.
Is International Business Machines' Cash-to-Debt too high?
International Business Machines' current Cash-to-Debt of 0.13 is 41% below median its 10-year median of 0.22. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.59. The Software industry median Cash-to-Debt is 2.57. International Business Machines' value of 0.13 is 94.9% below this industry median. Based on the distribution chart, International Business Machines ranks #2576 out of 2827 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, International Business Machines has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Cash-to-Debt compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #2576 out of 2827 companies for Cash-to-Debt. This places International Business Machines in the lower half of its industry. The industry median Cash-to-Debt is 2.57. International Business Machines' value of 0.13 is 94.9% below this benchmark. Historically, International Business Machines' own Cash-to-Debt has ranged from 0.13 to 0.59 over the past decade. While the company's 10-year median is 0.22 vs. the industry median of 2.57, 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-to-Debt for a Software company?
The median Cash-to-Debt among Software companies is 2.57, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Cash-to-Debt of 0.13 is 94.9% 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Cash-to-Debt is 2.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Cash-to-Debt is 0.13, which is 41% below median its own 10-year median of 0.22. 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?
International Business Machines (XSWX:IBM) has a current Cash-to-Debt of 0.13. The stock's GF Value™ is CHF194.52, compared to a current price of CHF189.32 — trading 2.7% below its estimated fair value. The current Cash-to-Debt is 0.13, which is 41% below median its 10-year median of 0.22 and 94.9% below the Software industry median of 2.57. International Business Machines' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current Cash-to-Debt is 0.13 as of Jun. 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 undervalued.
The current stock price of CHF189.32 is trading 2.7% below its estimated GF Value™ of CHF194.52.
Key valuation signals for XSWX:IBM:
Cash-to-Debt: 0.13 (41% below median its 10-year median of 0.22)
GF Value™: CHF194.52 vs. price of CHF189.32 (2.7% below fair value)
Industry Position: 94.9% below the Software median (#2576 of 2827)
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.
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.
80GF Score
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