International Business Machines (WBO:IBM) Cash-to-Debt

: 0.22 (As of Dec. 2023)

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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 Dec. 2023 was 0.22.

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 Machines couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

The historical rank and industry rank for International Business Machines's Cash-to-Debt or its related term are showing as below:

WBO:IBM' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.13 Med: 0.21 Max: 0.27
Current: 0.22

During the past 13 years, International Business Machines's highest Cash to Debt Ratio was 0.27. The lowest was 0.13. And the median was 0.21.

WBO:IBM's Cash-to-Debt is ranked worse than
85.02% of 2790 companies
in the Software industry
Industry Median: 2.415 vs WBO:IBM: 0.22

International Business Machines Cash-to-Debt Historical Data

The historical data trend for International Business Machines's Cash-to-Debt can be seen below:

* 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.

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International Business Machines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

0.13

0.21

0.13

0.16

0.22

International Business Machines Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash-to-Debt																0.16	0.28	0.27	0.19	0.22

Competitive 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 Distribution

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.

International Business Machines Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

International Business Machines's Cash to Debt Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	12325.397	/	(6644.582	+	48315.813)
	=	0.22

International Business Machines's Cash to Debt Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	12325.397	/	(6644.582	+	48315.813)
	=	0.22

International Business Machines (WBO: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

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International Business Machines (WBO:IBM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » International Business Machines Corp (WBO:IBM) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

IBM:USA IBM:Mexico 1IBM:Italy IBMd:UK IBM:UK IBM:Germany IBM:Chile IBM:Canada IBMB34:Brazil IBM:Argentina

Address

One New Orchard Road, Armonk, NY, USA, 10504

Website

http://www.ibm.com

IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.