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IBM (International Business Machines) Debt-to-EBITDA : 3.01 (As of Dec. 2024)


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What is International Business Machines Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

International Business Machines's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $5,857 Mil. International Business Machines's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $52,539 Mil. International Business Machines's annualized EBITDA for the quarter that ended in Dec. 2024 was $19,372 Mil. International Business Machines's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 was 3.01.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

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

IBM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.97   Med: 4.26   Max: 7.53
Current: 4.8

During the past 13 years, the highest Debt-to-EBITDA Ratio of International Business Machines was 7.53. The lowest was 1.97. And the median was 4.26.

IBM's Debt-to-EBITDA is ranked worse than
84.24% of 1675 companies
in the Software industry
Industry Median: 1.08 vs IBM: 4.80

International Business Machines Debt-to-EBITDA Historical Data

The historical data trend for International Business Machines's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

International Business Machines Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.17 4.44 7.53 4.08 4.80

International Business Machines Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Debt-to-EBITDA Get a 7-Day Free Trial 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 2.82 5.96 3.94 16.80 3.01

Competitive Comparison of International Business Machines's Debt-to-EBITDA

For the Information Technology Services subindustry, International Business Machines's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, International Business Machines's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where International Business Machines's Debt-to-EBITDA falls into.


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International Business Machines Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

International Business Machines's Debt-to-EBITDA for the fiscal year that ended in Dec. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5857 + 52539) / 12176
=4.80

International Business Machines's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5857 + 52539) / 19372
=3.01

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2024) EBITDA data.


International Business Machines  (NYSE:IBM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


International Business Machines Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of International Business Machines's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


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 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.
Executives
David N Farr director
Alfred W Zollar director C/O LOTUS SOFTWARE, ONE ROGER STREET, CAMBRIDGE MA 02142
Nickle Jaclyn Lamoreaux officer: Senior Vice President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Michelle H Browdy officer: Senior Vice President IBM CORPORATION, ONE NEW ORCHARD ROAD, ARMONK NY 10504-1722
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
Michelle J Howard director C/O SECRETARY'S OFFICE, IBM CORPORATION, ARMONK NY 10504
Gary D Cohn officer: Vice Chairman 812 PARK AVENUE, 7-8A, NEW YORK NY 10021
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