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International Business Machines (International Business Machines) Net Margin %

: 18.92% (As of Dec. 2023)
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Net margin is calculated as Net Income divided by its Revenue. International Business Machines's Net Income for the three months ended in Dec. 2023 was $3,288 Mil. International Business Machines's Revenue for the three months ended in Dec. 2023 was $17,380 Mil. Therefore, International Business Machines's net margin for the quarter that ended in Dec. 2023 was 18.92%.

The historical rank and industry rank for International Business Machines's Net Margin % or its related term are showing as below:

IBM' s Net Margin % Range Over the Past 10 Years
Min: 2.71   Med: 11.55   Max: 16.34
Current: 12.13


IBM's Net Margin % is ranked better than
81.08% of 2759 companies
in the Software industry
Industry Median: 1.72 vs IBM: 12.13

International Business Machines Net Margin % Historical Data

The historical data trend for International Business Machines's Net Margin % 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.

* Premium members only.

International Business Machines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.34 10.13 10.01 2.71 12.13

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
Net Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.24 6.50 10.23 11.55 18.92

Competitive Comparison

For the Information Technology Services subindustry, International Business Machines's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % Distribution

For the Software industry and Technology sector, International Business Machines's Net Margin % distribution charts can be found below:

* The bar in red indicates where International Business Machines's Net Margin % falls into.



International Business Machines Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

International Business Machines's Net Margin for the fiscal year that ended in Dec. 2023 is calculated as

Net Margin=Net Income (A: Dec. 2023 )/Revenue (A: Dec. 2023 )
=7502/61860
=12.13 %

International Business Machines's Net Margin for the quarter that ended in Dec. 2023 is calculated as

Net Margin=Net Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=3288/17380
=18.92 %

* 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  (NYSE:IBM) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


International Business Machines Net Margin % Related Terms

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International Business Machines (International Business Machines) Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
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.
Executives
Michael Miebach director 2000 PURCHASE STREET, PURCHASE NY 10577
James J Kavanaugh officer: Vice President and Controller IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Nicolas A. Fehring officer: VP, Controller ONE NEW ORCHARD ROAD, ARMONK NY 10504
Del Bene Robert F officer: VP, Controller IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
David N Farr director
Michelle J Howard director C/O SECRETARY'S OFFICE, IBM CORPORATION, ARMONK NY 10504
Alfred W Zollar director C/O LOTUS SOFTWARE, ONE ROGER STREET, CAMBRIDGE MA 02142
Gary D Cohn officer: Vice Chairman 812 PARK AVENUE, 7-8A, NEW YORK NY 10021
Nickle Jaclyn Lamoreaux officer: Senior Vice President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
James M Whitehurst officer: President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Andrew N Liveris director 2211 H.H. DOW WAY, MIDLAND MI 48674
Joseph Swedish director WELLPOINT, INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Frederick H Waddell director 50 S. LA SALLE ST., CHICAGO IL 60675
Mcnabb Frederick William Iii director C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343