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Why are Current and Historical Ratios important to IBM?

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Why are current and historical ratios important to IBM?

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Solution Summary

* Brief analysis of IBM's revenues (2011 to 2015)
* Analysis of IBM's debt ratios in 2016 (2011 to 2015)
* Importance of ratios to companies
* 475 words
* three non-APA references

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In analyzing IBM's revenues, the decline from $106.9 billion in 2011 to $83.8 billion in Sept. 2015 proves the company's growth challenges over the years. However, due to IBM's strategy in focusing more on higher-margin software solutions instead of its declining mainframe business, the company enjoys a competitive advantage in terms of IT services and enterprise software solutions. While its debt ($39.6 billion) is a lot lower than its assets ($108.6 billion) as of Sept. 2015, there is still a need to check on IBM's debt ratios to gather a more detailed information.

Andriy Blokhin's article on Analyzing IBM's Debt Ratios in 2016 (IBM) discusses IBM's debt ratios: debt-to-equity ratio, interest coverage ratio, and cash flow-to-debt ratio.

IBM's debt-to-equity ratio shows how a company can ...

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