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International Business Machines Corporation (IBM) Interest Coverage Ratio: 5.34x

The interest coverage ratio for International Business Machines Corporation (IBM) is 5.34x as of Wednesday, June 10, 2026.

IBM Interest Coverage Ratio Metrics

INTEREST COVERAGE RATIO

5.34x

IBM Competitors' Interest Coverage Ratio

NAMEMARKET CAPINTEREST COVERAGE RATIOTTM3Y5Y
International Business Machines Corporation (IBM)5.34xN/AN/AN/A
Texas Instruments Incorporated (TXN)$257.37B11.09x10.93x22.50x28.29x
KLA Corporation (KLAC)$279.96B17.34x14.51x16.31x15.34x
Marvell Technology, Inc. (MRVL)$223.92B6.61x6.61x4.00x4.00x
Palantir Technologies Inc. (PLTR)$303.24BN/A34.57x34.57x34.57x
QUALCOMM Incorporated (QCOM)$202.82B18.61x16.53x19.16x17.43x
Analog Devices, Inc. (ADI)$191.81B9.23x7.77x10.00x11.10x
Arm Holdings plc American Depositary Shares (ARM)$328.47BN/AN/AN/AN/A
Amphenol Corporation (APH)$184.89B16.24x15.69x17.57x17.24x
Seagate Technology Holdings plc (STX)$182.47B5.89x3.63x5.03x5.67x

Financial Health Indicators

Interest Coverage

5.3x

Debt/Equity

2.06

Current Ratio

0.93

Formula: Interest Coverage = EBIT / Interest Expense

Reference ranges:

  • < 1.5x: EBIT is less than 1.5 times interest expense
  • 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
  • 3x - 5x: EBIT is between 3 and 5 times interest expense
  • > 5x: EBIT is more than 5 times interest expense

Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.

International Business Machines Corporation Interest Coverage Ratio Formula & Definition

Interest Coverage = EBIT / Interest Expense

The interest coverage ratio measures operating earnings relative to interest expense.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

International Business Machines Corporation Interest Coverage Ratio FAQ

What is the interest coverage ratio for International Business Machines Corporation (IBM)?
The interest coverage ratio for IBM stock is 5.34x.

About International Business Machines Corporation

International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.

Armonk, NY
270,300 employees
Technology / Information Technology Services
Sector
Technology
Industry
Information Technology Services
CEO
Arvind Krishna