Ratios Reveal: Breaking Down International Business Machines Corp (IBM)’s Financial Health

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International Business Machines Corp (NYSE: IBM) closed the day trading at $244.84 up 0.91% from the previous closing price of $242.63. In other words, the price has increased by $0.91 from its previous closing price. On the day, 3.69 million shares were traded. IBM stock price reached its highest trading level at $245.96 during the session, while it also had its lowest trading level at $242.0.

Ratios:

For a better understanding of IBM, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 14.69 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 18.63. For the most recent quarter (mrq), Quick Ratio is recorded 0.84 and its Current Ratio is at 0.88. In the meantime, Its Debt-to-Equity ratio is 2.46 whereas as Long-Term Debt/Eq ratio is at 2.11.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Mar 03 ’25 when Thomas Robert David sold 26,543 shares for $253.01 per share. The transaction valued at 6,715,639 led to the insider holds 45,007 shares of the business.

ROBERT D THOMAS bought 26,543 shares of IBM for $6,715,639 on Mar 03 ’25. On Feb 28 ’25, another insider, FARR DAVID N, who serves as the Director of the company, bought 1,200 shares for $249.00 each. As a result, the insider paid 298,800 and bolstered with 8,258 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, IBM now has a Market Capitalization of 228073095168 and an Enterprise Value of 280424185856. As of this moment, International’s Price-to-Earnings (P/E) ratio for their current fiscal year is 39.71, and their Forward P/E ratio for the next fiscal year is 20.52. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 5.70. For the stock, the TTM Price-to-Sale (P/S) ratio is 3.56 while its Price-to-Book (P/B) ratio in mrq is 8.29. Its current Enterprise Value per Revenue stands at 4.379 whereas that against EBITDA is 19.772.

Stock Price History:

The Beta on a monthly basis for IBM is 0.69, which has changed by 0.23097038 over the last 52 weeks, in comparison to a change of 0.1590569 over the same period for the S&P500. Over the past 52 weeks, IBM has reached a high of $296.16, while it has fallen to a 52-week low of $196.97. The 50-Day Moving Average of the stock is -8.33%, while the 200-Day Moving Average is calculated to be -1.37%.

Shares Statistics:

Over the past 3-months, IBM traded about 4.63M shares per day on average, while over the past 10 days, IBM traded about 3776230 shares per day. A total of 931.52M shares are outstanding, with a floating share count of 930.60M. Insiders hold about 0.10% of the company’s shares, while institutions hold 64.15% stake in the company. Shares short for IBM as of 1755216000 were 14734621 with a Short Ratio of 3.18, compared to 1752537600 on 18084576. Therefore, it implies a Short% of Shares Outstanding of 14734621 and a Short% of Float of 1.76.

Dividends & Splits

IBM’s forward annual dividend rate is 6.70, up from 6.69 a year ago. Against a Trailing Annual Dividend Yield of 0.027572848The stock’s 5-year Average Dividend Yield is 4.36. The current Payout Ratio is 103.78% for IBM, which recently paid a dividend on 2025-08-08 with an ex-dividend date of 2025-08-08. Stock splits for the company last occurred on 2021-11-04 when the company split stock in a 1046:1000 ratio.

Earnings Estimates

Its stock is currently analyzed by 15.0 different market analysts. The consensus estimate for the next quarter is $4.33, with high estimates of $4.65 and low estimates of $4.05.

Analysts are recommending an EPS of between $11.4 and $10.41 for the fiscal current year, implying an average EPS of $11.1. EPS for the following year is $11.85, with 20.0 analysts recommending between $12.74 and $10.8.

Revenue Estimates

15 analysts predict $16.11B in revenue for the current quarter. It ranges from a high estimate of $16.36B to a low estimate of $15.99B. As of the current estimate, International Business Machines Corp’s year-ago sales were $14.97BFor the next quarter, 15 analysts are estimating revenue of $19.13B. There is a high estimate of $19.96B for the next quarter, whereas the lowest estimate is $18.4B.

A total of 17 analysts have provided revenue estimates for IBM’s current fiscal year. The highest revenue estimate was $67.84B, while the lowest revenue estimate was $66.32B, resulting in an average revenue estimate of $66.75B. In the same quarter a year ago, actual revenue was $62.75BBased on 20 analysts’ estimates, the company’s revenue will be $69.57B in the next fiscal year. The high estimate is $70.79B and the low estimate is $68.41B.

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