IBM Quick Ratio Analysis

IBM’s quick ratio of 0.37x means the company has only $0.37 in highly liquid assets (cash, marketable securities, receivables) for every $1 of current liabilities due within a year.

This is well below the sector median of 0.71x, placing IBM in the 21st percentile among its peers – indicating weaker short-term liquidity than most comparable firms. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no values exist for the last eight quarters. Since both the current level is low and no trend can be assessed, the lack of improvement over time adds uncertainty; without a downward or upward trajectory, the risk is that the already thin liquidity buffer may persist. This weak quick ratio does not contradict the overall NEUTRAL verdict – it highlights a specific downside risk, but the verdict acknowledges that other factors offset this enough to avoid a bearish or bullish call.

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