International Business Machines (IBM) FY2016 results: revenue $79.9 billion, down 2.2% on the year
International Business Machines Corp. (IBM) reported revenue of $79.9 billion for fiscal 2016, the year ended 31 December 2016, down 2.2% on the year before. Net income was $11.9 billion, down 10.0%, and diluted earnings per share $12.38. The figures are the company's own, from the 10-K it filed with the SEC on 28 February 2017.
Revenue
$79.9 billion
-2.2% on the year
FY2009FY2016
Operating margin
n/a
FY2009FY2016
Net income
$11.9 billion
-10.0% on the year
FY2009FY2016
Diluted EPS
$12.38
-7.7% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
79,919
81,741
92,793
-2.2%
Cost of revenue
41,403
41,057
46,386
+0.8%
Gross profit
38,516
40,684
46,407
-5.3%
Gross margin
48.2%
49.8%
50.0%
Research and development
5,726
5,247
5,437
+9.1%
Selling, general and administrative
20,869
20,430
23,180
+2.1%
Interest expense
630
468
484
+34.6%
Pre-tax income
12,330
15,945
19,986
-22.7%
Income tax
449
2,581
4,234
-82.6%
Effective tax rate
3.6%
16.2%
21.2%
Net income
11,872
13,190
12,022
-10.0%
Net margin
14.9%
16.1%
13.0%
Diluted EPS
$12.38
$13.42
$11.90
-7.7%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
17,084
17,255
16,868
-1.0%
Capital expenditure
3,567
3,579
3,740
-0.3%
Free cash flow
13,517
13,676
13,128
-1.2%
Free cash flow margin
16.9%
16.7%
14.1%
Cash from investing
-10,928
-8,159
-3,001
Cash from financing
-5,917
-9,413
-15,452
Depreciation and amortisation
4,381
3,855
4,492
+13.6%
Share-based compensation
544
468
512
+16.2%
Buybacks
3,502
4,609
13,679
-24.0%
Dividends paid
5,256
4,897
4,265
+7.3%
Dividend per share
$5.50
n/a
n/a
Diluted shares, weighted
959m
983m
1,010m
-2.4%
Shares outstanding at period end
946m
966m
991m
-2.1%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
18,246
14,262
11,868
+27.9%
Non-controlling interest
146
162
146
-9.9%
Debt
42,168
39,889
40,722
+5.7%
Other liabilities
56,910
56,182
64,535
+1.3%
Total liabilities and equity
117,470
110,495
117,271
+6.3%
Fixed assets
10,830
10,727
10,771
+1.0%
Goodwill
36,199
32,021
30,556
+13.0%
Intangible assets
4,688
3,487
3,104
+34.4%
Investments
709
516
9.0
+37.4%
Cash and equivalents
7,826
7,686
8,476
+1.8%
Receivables
9,182
8,333
9,090
+10.2%
Inventory
1,553
1,551
2,103
+0.1%
Other assets
46,483
46,174
53,162
+0.7%
Total assets
117,470
110,495
117,271
+6.3%
10-K for the year ended 31 December 2016, filed 28 February 2017: the filing.