International Business Machines (IBM) FY2019 results: revenue $57.7 billion, down 27.5% on the year
International Business Machines Corp. (IBM) reported revenue of $57.7 billion for fiscal 2019, the year ended 31 December 2019, down 27.5% on the year before. Net income was $9.4 billion, up 8.1%, and diluted earnings per share $10.56. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2020.
Revenue
$57.7 billion
-27.5% on the year
FY2012FY2019
Operating margin
n/a
FY2012FY2019
Net income
$9.4 billion
+8.1% on the year
FY2012FY2019
Diluted EPS
$10.56
+10.9% on the year
FY2012FY2019
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Revenue
57,714
79,591
79,139
-27.5%
Cost of revenue
26,181
42,655
42,196
-38.6%
Gross profit
31,533
36,936
36,943
-14.6%
Gross margin
54.6%
46.4%
46.7%
Research and development
5,910
5,379
5,590
+9.9%
Selling, general and administrative
18,724
19,366
19,680
-3.3%
Interest expense
1,344
723
615
+85.9%
Pre-tax income
7,206
11,342
11,400
-36.5%
Income tax
60.0
2,619
5,642
-97.7%
Effective tax rate
0.8%
23.1%
49.5%
Net income
9,431
8,728
5,753
+8.1%
Net margin
16.3%
11.0%
7.3%
Diluted EPS
$10.56
$9.52
$6.14
+10.9%
$ 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
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
14,770
15,247
16,724
-3.1%
Capital expenditure
2,286
3,395
3,229
-32.7%
Free cash flow
12,484
11,852
13,495
+5.3%
Free cash flow margin
21.6%
14.9%
17.1%
Cash from investing
-26,936
-4,913
-7,081
Cash from financing
9,042
-10,469
-6,418
Depreciation and amortisation
6,059
4,480
4,541
+35.2%
Share-based compensation
679
510
534
+33.1%
Buybacks
1,361
4,443
4,340
-69.4%
Dividends paid
5,707
5,666
5,506
+0.7%
Dividend per share
$6.43
$6.21
$5.90
+3.5%
Diluted shares, weighted
893m
916m
937m
-2.6%
Shares outstanding at period end
887m
892m
922m
-0.6%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
20,841
16,796
17,594
+24.1%
Non-controlling interest
144
134
131
+7.5%
Debt
62,899
45,812
46,824
+37.3%
Operating lease liabilities
3,879
n/a
n/a
Other liabilities
64,423
60,640
60,807
+6.2%
Total liabilities and equity
152,186
123,382
125,356
+23.3%
Fixed assets
10,010
10,792
11,116
-7.2%
Goodwill
52,471
36,265
36,788
+44.7%
Intangible assets
15,235
3,087
3,742
+393.5%
Investments
696
618
619
+12.6%
Cash and equivalents
8,172
11,379
11,972
-28.2%
Receivables
7,870
7,432
8,928
+5.9%
Inventory
1,619
1,682
1,583
-3.7%
Other assets
56,113
52,127
50,608
+7.6%
Total assets
152,186
123,382
125,356
+23.3%
10-K for the year ended 31 December 2019, filed 25 February 2020: the filing.