IBMNEUTRAL

IBM Debt-to-Equity Ratio Analysis

1.80x

Updated 77h ago·SEC filings & market data

Key Takeaway

The Debt-to-Equity Ratio measures how much debt a company uses to finance its operations relative to shareholder equity; IBM’s ratio of 1.80x means it has $1.80 in debt for every $1 of equity.

Sector Performance

81th percentile

IBM

1.80x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

2.14x(Apr 2026)

↑ Improving
📊

Deep Analysis

The Debt-to-Equity Ratio measures how much debt a company uses to finance its operations relative to shareholder equity; IBM’s ratio of 1.80x means it has $1.80 in debt for every $1 of equity.

This is well above the sector median of 0.73x, placing IBM in the 83rd percentile — indicating it carries more debt than 83% of its peer group. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all marked N/A, so no short‑ or long‑term direction can be assessed. Because the ratio is elevated and the trend is unknown, the lack of movement data means investors cannot determine if leverage is rising or falling, which adds a layer of uncertainty to risk evaluation. The combination of a high debt load and no trend visibility suggests cautious monitoring is warranted, as any further increase could pressure financial flexibility. This analysis supports the NEUTRAL verdict: the elevated ratio points to above‑average financial risk, but the absence of trend information prevents a clear signal toward either a bullish or bearish stance.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about IBM?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are IBM's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

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IBM

1.80x

Sector Median

0.74x

Sector Avg

2.51x

How IBM's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.