International Business Machines Corporation (IBM) FCF Payout Ratio: 47.94%
Is International Business Machines Corporation’s FCF payout ratio high or low?
International Business Machines Corporation's FCF payout ratio of 47.94% is 11% below its 5-year average of 53.95%, near the low end of its 5-year range (38.73%–70.28%).
The FCF payout ratio for International Business Machines Corporation (IBM) is 47.94%. It is below its 12-month average by 9.81% (53.15%).
IBM FCF Payout Ratio Chart
IBM Average FCF Payout Ratio Chart
IBM Current vs Average FCF Payout Ratio Chart
IBM FCF Payout Ratio Metrics
FCF PAYOUT RATIO
47.94%
FCF PAYOUT RATIO AVG TTM
53.15%
FCF PAYOUT RATIO AVG 3Y
56.61%
FCF PAYOUT RATIO AVG 5Y
53.95%
FCF PAYOUT RATIO AVG 10Y
49.32%
FCF PAYOUT RATIO AVG 15Y
42.31%
FCF PAYOUT RATIO AVG 20Y
36.29%
CURRENT VS TTM AVG
-9.81%
CURRENT VS 3Y AVG
-15.31%
CURRENT VS 5Y AVG
-11.13%
CURRENT VS 10Y AVG
-2.80%
CURRENT VS 15Y AVG
+13.32%
CURRENT VS 20Y AVG
+32.10%
Payout Ratio Comparison
FCF Payout Ratio
47.9%
Earnings Payout Ratio
59.2%
Dividend Yield
2.45%
FCF Yield
5.01%
Annual FCF Payout Ratio History
| Year | Free Cash Flow | Dividends Paid | FCF Payout Ratio |
|---|---|---|---|
| 2025 | $11.57B | $6.25B | 54.0% |
| 2024 | $11.76B | $6.15B | 52.3% |
| 2023 | $12.12B | $6.04B | 49.8% |
| 2022 | $8.46B | $5.95B | 70.3% |
| 2021 | $10.03B | $5.87B | 58.5% |
| 2020 | $14.97B | $5.80B | 38.7% |
| 2019 | $11.86B | $5.71B | 48.1% |
| 2018 | $11.28B | $5.67B | 50.2% |
| 2017 | $12.95B | $5.51B | 42.5% |
| 2016 | $12.93B | $5.26B | 40.6% |
| 2015 | $13.10B | $4.90B | 37.4% |
| 2014 | $12.69B | $4.30B | 33.9% |
| 2013 | $13.35B | $4.10B | 30.7% |
| 2012 | $14.87B | $3.77B | 25.4% |
| 2011 | $15.18B | $3.47B | 22.9% |
| 2010 | $14.79B | $3.18B | 21.5% |
| 2009 | $16.70B | $2.86B | 17.1% |
| 2008 | $13.93B | $2.58B | 18.6% |
| 2007 | $10.58B | $2.15B | 20.3% |
| 2006 | $9.85B | $1.68B | 17.1% |
| 2005 | $10.28B | $1.25B | 12.2% |
| 2004 | $10.29B | $1.17B | 11.4% |
| 2003 | $9.56B | $1.08B | 11.3% |
| 2002 | $8.44B | $1.00B | 11.9% |
| 2001 | $8.62B | $966.00M | 11.2% |
| 2000 | $3.09B | $929.00M | 30.0% |
| 1999 | $3.69B | $879.00M | 23.8% |
| 1998 | $2.50B | $834.00M | 33.3% |
| 1997 | $1.76B | $783.00M | 44.5% |
| 1996 | $4.10B | $706.00M | 17.2% |
Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100
FCF payout and earnings payout:
- FCF represents operating cash flow after capital expenditures
- FCF payout compares dividends paid with free cash flow
- FCF payout above 100% means dividends paid exceeded free cash flow for the period
- Earnings payout compares dividends paid with net income
Reading the series: Use the chart and table to compare dividend payments with cash generation over time.
International Business Machines Corporation FCF Payout Ratio Formula & Definition
FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
International Business Machines Corporation FCF Payout Ratio FAQ
- What is the FCF payout ratio for International Business Machines Corporation (IBM)?
- The FCF payout ratio for IBM stock is 47.94%.
- Is International Business Machines Corporation's FCF payout ratio high or low?
- International Business Machines Corporation's FCF payout ratio of 47.94% is 11% below its 5-year average of 53.95%, near the low end of its 5-year range (38.73%–70.28%).
- What is the TTM average FCF payout ratio for International Business Machines Corporation (IBM)?
- The TTM average FCF payout ratio for IBM stock is 53.15%.
- What is the 3Y average FCF payout ratio for International Business Machines Corporation (IBM)?
- The 3Y average FCF payout ratio for IBM stock is 56.61%.
- What is the 5Y average FCF payout ratio for International Business Machines Corporation (IBM)?
- The 5Y average FCF payout ratio for IBM stock is 53.95%.
- What is the 10Y average FCF payout ratio for International Business Machines Corporation (IBM)?
- The 10Y average FCF payout ratio for IBM stock is 49.32%.
- What is the 15Y average FCF payout ratio for International Business Machines Corporation (IBM)?
- The 15Y average FCF payout ratio for IBM stock is 42.31%.
- What is the 20Y average FCF payout ratio for International Business Machines Corporation (IBM)?
- The 20Y average FCF payout ratio for IBM stock is 36.29%.
International Business Machines Corporation FCF Payout Ratio History
| DATE | FCF PAYOUT RATIO |
|---|---|
| 2025-12-31 | 54.04% |
| 2024-12-31 | 52.27% |
| 2023-12-31 | 49.83% |
| 2022-12-31 | 70.28% |
| 2021-12-31 | 58.53% |
| 2020-12-31 | 38.73% |
| 2019-12-31 | 48.11% |
| 2018-12-31 | 50.22% |
| 2017-12-31 | 42.51% |
| 2016-12-31 | 40.64% |
| 2015-12-31 | 37.39% |
| 2014-12-31 | 33.90% |
| 2013-12-31 | 30.72% |
| 2012-12-31 | 25.37% |
| 2011-12-31 | 22.88% |
| 2010-12-31 | 21.47% |
| 2009-12-31 | 17.13% |
| 2008-12-31 | 18.56% |
| 2007-12-31 | 20.29% |
| 2006-12-31 | 17.08% |
| 2005-12-31 | 12.16% |
| 2004-12-31 | 11.41% |
| 2003-12-31 | 11.35% |
| 2002-12-31 | 11.91% |
| 2001-12-31 | 11.21% |
| 2000-12-31 | 30.04% |
| 1999-12-31 | 23.83% |
| 1998-12-31 | 33.32% |
| 1997-12-31 | 44.54% |
| 1996-12-31 | 17.23% |
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