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
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| International Business Machines Corporation (IBM) | — | 5.34x | N/A | N/A | N/A |
| Texas Instruments Incorporated (TXN) | $257.37B | 11.09x | 10.93x | 22.50x | 28.29x |
| KLA Corporation (KLAC) | $279.96B | 17.34x | 14.51x | 16.31x | 15.34x |
| Marvell Technology, Inc. (MRVL) | $223.92B | 6.61x | 6.61x | 4.00x | 4.00x |
| Palantir Technologies Inc. (PLTR) | $303.24B | N/A | 34.57x | 34.57x | 34.57x |
| QUALCOMM Incorporated (QCOM) | $202.82B | 18.61x | 16.53x | 19.16x | 17.43x |
| Analog Devices, Inc. (ADI) | $191.81B | 9.23x | 7.77x | 10.00x | 11.10x |
| Arm Holdings plc American Depositary Shares (ARM) | $328.47B | N/A | N/A | N/A | N/A |
| Amphenol Corporation (APH) | $184.89B | 16.24x | 15.69x | 17.57x | 17.24x |
| Seagate Technology Holdings plc (STX) | $182.47B | 5.89x | 3.63x | 5.03x | 5.67x |
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.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Arvind Krishna