International Business Machines Corporation cash flow to debt ratio of 19.64% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

International Business Machines Corporation's free cash flow has decreased 1.57% from $11.76B last year to $11.57B, signaling decreasing performance

International Business Machines Corporation's debt to equity ratio is 1.89, which means that the company's assets are unhealthy financed, signaling financial risk.

International Business Machines Corporation's debt has decreased relative to shareholder equity from 2.14 last year to 1.89 today, signaling strengthened financials

International Business Machines Corporation has a net debt to EBITDA ratio of 3.05x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

International Business Machines Corporation's interest coverage ratio of 6.40 indicates that earnings with good margin can cover interest payments on company debt

International Business Machines Corporation's profit margin has increased (61.72%) in the last year from 9.60% to 15.52%, signaling increasing performance

International Business Machines Corporation's short-term liabilities of $38.66B exceed its short-term assets of $35.86B, signaling financial risk

International Business Machines Corporation's return on assets of 7.05% is higher than the 5.00% threshold, indicating efficient asset utilization

International Business Machines Corporation's return on equity of 33.52%, is higher than 15.00%, indicating good performance

International Business Machines Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

International Business Machines Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

International Business Machines Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

International Business Machines Corporation has a free cash flow yield of 5.20%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

International Business Machines Corporation's yearly earnings has increased 75.88% since last year from $6.02B to $10.59B, signaling increasing performance

International Business Machines Corporation's yearly revenue has increased 7.62% since last year from $62.75B to $67.53B, signaling increasing performance

ROIC 10.45% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

International Business Machines Corporation's 3-year revenue CAGR of 3.72% is positive, indicating growing revenue over the past 3 years

International Business Machines Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

International Business Machines Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

International Business Machines Corporation is overvalued relative to its fair value price of 59.10 based on Discounted Cash Flow model

International Business Machines Corporation has an earnings yield of 4.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

International Business Machines Corporation is overvalued relative to its fair value price of 71.94 based on EBITDA multiple model

International Business Machines Corporation has an EV/EBITDA ratio of 15.93x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

International Business Machines Corporation is overvalued relative to its fair value price of 192.96 based on Earnings Fair Value model

International Business Machines Corporation has a PEG-ratio over 1 which is considered overvalued

International Business Machines Corporation has a price-to-book ratio of 6.43x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

International Business Machines Corporation has a price-to-sales ratio of 3.21x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue