IBM Current Ratio Analysis

The current ratio of 0.79x means IBM has only $0.79 in current assets (cash, receivables, inventory) for every $1.00 of short-term liabilities, indicating a tight liquidity position.

This is well below the sector median of 1.20x, placing IBM in the 19th percentile among its peers—meaning 81% of competitors have a stronger current ratio. The trend is not available because no year-over-year or quarter-over-quarter changes were provided, and only a single historical value of 0.79x exists for the last eight quarters. Without trend data, the low level alone suggests a risk that IBM may struggle to cover its near-term obligations, but no direction (improvement or deterioration) can be inferred. This combination of a low current ratio with no trend information does not clearly signal a worsening risk, though the low percentile rank is a caution. The neutral overall verdict is supported because the metric highlights a financial risk that is offset by the absence of a negative trend, leaving no clear bullish or bearish tilt.

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