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IBM's Financial Statements

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1. Discuss IBM's current and historical Financial Statements (Income Statement (I/S), Balance Sheet (B/S) and Statement of Cash Flows) from 2014, 2015, and 2016. The financial statements must include changes (deltas) between years.
2. Discuss Ratios from the most current and available 3 years with deltas and analysis
3. Alternative strategies (giving advantages and alternatives for each)

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Solution Summary

The response provides you a structured explanation of changes between IBM's current and historical financial statements and its implications . It also gives you the relevant references.

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1.
The income statement of IBM shows that the total revenues of IBM have declined from $92.7 billion in 2014 to $79.9 billion in 2016. The delta shows that the decline is highest $11 billion between 2014 and 2015 but the delta has reduced to $1.8 billion between 2015 and 2016. During the period the total operating expenses have also declined from $73.5 to $69.2 billion. However, between 2014 and 2015 the decline (delta) was $7.8 billion, between 2015 and 2016 the delta was positive. This means that even thought the sales revenues declined the operating expenses increased by $5.5 billion. Also, during the period 2014 and 2016 the net income declined from $12.0 billion to $11.9 billion(Anon, 2017). However, during 2015 the delta was positive and the net income had increased by $1.1 billion between 2014 and 2015. After 2015, there was a decline of $1.2 billion and the net income came down to $11.9 billion in 2016.

The balance sheet of IBM between 2014 and 2016 shows an increase in total assets of $200 million. However, between 2014 and 2015, the delta is negative $6.7 billion. This means that the total assets declined by $6.7 billion. Again between 2015 and 2016 the delta for total assets is $7 billion. This means that the total assets ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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