INTERNATIONAL BUSINESS MACHINES CORP (IBM) Financial Ratio Screen

NYSE Technology United States USD 222042M
RATIOS FAIL*
Automated financial screen · activity assessed separately
INTERNATIONAL BUSINESS MACHINES CORP (IBM) is potentially non-compliant in the automated ratio model. The company's debt ratio of 42.5% exceeds the 30% MSCI new-inclusion threshold relative to total assets. INTERNATIONAL BUSINESS MACHINES CORP operates in the Technology sector.

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MSCI new-inclusion financial-ratio snapshot

IBM financial screening at a glance

RATIOS FAIL*Financial ratios shown separately from business review — not a fatwa
Debt ratio
42.5%
Fail vs 30%
Cash ratio
9.5%
Pass vs 30%
Receivables + cash
20.4%
Pass vs 30%
Impermissible income
1.0%
Pass vs 5%

Calculation date: 2026-08-31. Financial period used: December 2025. The ratios are automated proxies inspired by published methodologies; they are not official index determinations.

Independent method comparison

What the available screens say

How MSCI, FTSE and S&P-style screens differ
Request this stock review
MSCI-styleFinancial criteria not metAt least one available ratio exceeds its threshold
FTSE/Yasaar-styleFinancial criteria not metAt least one available ratio exceeds its threshold
S&P-style provisionalNot yet availableRequired denominator or financial data is incomplete
Business activityAssessment pendingFinancial results do not determine business permissibility
Complete screening result: not yet completeA complete result requires both supported financial criteria and adequate activity evidence. This site does not issue a fatwa or official index decision.
Financial periodDecember 2025Calculation date2026-08-31S&P-style historynot availableLast activity reviewnot yet reviewed

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Business activity evidence

Activity assessment in progress

The supplied classification (Information Technology Services) is only a starting point. Revenue evidence is being assessed before any complete screening conclusion.

Revenue segments: Latest SEC annual filing checked; no usable dimensioned business-revenue facts were found. Open the SEC annual filing.

Profile description reviewed: International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company has a strategic partnership with OpenAI. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

Sources to verify: Secondary company profile and classification · Issuer website · SEC issuer filings

A sector label or company description can flag a risk but cannot establish a compliant-revenue percentage. Only sourced segment disclosures may support that calculation.

Published-ratio reproductions (not certifications)

The table shows implemented MSCI and FTSE/Yasaar-style asset-based models plus a provisional S&P-style leverage reconstruction where a complete 36-month denominator exists. These are independent calculations, not official index results or Shariah determinations. See formulas, sources and limitations.

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
MSCI 42.5%
/ 30%
9.5%
/ 30%
20.4%
/ 30%
0.96%
/ 5%
RATIOS FAIL*
FTSE 42.5%
/ 33%
9.5%
/ 33%
20.4%
/ 50%
0.96%
/ 5%
RATIOS FAIL*

Financial Highlights

P/E Ratio
20.9
Forward: 17.9
EPS
$11.27
Dividend Yield
287.0%
Payout: 59.8%
P/B Ratio
6.4
EV/EBITDA
17.0
EV: $279.3B
Revenue
$67.5B
Growth: 1.1%
Beta
0.7
Low volatility
Current Ratio
0.8

Profitability

Gross Margin 58.1%
Operating Margin 16.5%
Net Margin 15.5%
Return on Equity (ROE) 34.5%
Return on Assets (ROA) 5.3%

Cash Flow & Balance Sheet

Operating Cash Flow$13.2B
Free Cash Flow$11.5B
Total Debt$64.6B
Debt-to-Equity189.0
Current Ratio0.8
Total Assets$151.9B

Price & Trading

Last Close$233.69
50-Day MA$247.36
200-Day MA$266.00
Avg Volume10.7M
Beta0.7
52-Week Range
$199.19
$332.46

Financial data provenance and verification

The displayed fields were imported from yfinance on 2026-08-24 for the financial period December 2025. This is a secondary data feed and can differ from amended or newly filed statements.

Verification rule: check debt, cash, receivables, revenue and interest income against the latest primary filing before relying on an automated ratio.

About INTERNATIONAL BUSINESS MACHINES CORP (IBM)

CEO
Mr. Arvind Krishna
Employees
264,300
Sector
Technology
Industry
Information Technology Services
Country
United States
Exchange
NYSE
Market Cap (listing currency)
USD 222042M
Currency
USD

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company has a strategic partnership with OpenAI. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

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Frequently Asked Questions

Is INTERNATIONAL BUSINESS MACHINES CORP (IBM) halal to invest in?

The current automated result is Financial criteria not met or an activity exclusion was detected. It uses available public financial fields and simplified methodology proxies. It is not a fatwa or an official determination by AAOIFI, DJIM, MSCI, S&P, or FTSE.

What is INTERNATIONAL BUSINESS MACHINES CORP's debt ratio?

INTERNATIONAL BUSINESS MACHINES CORP's debt ratio is 42.5% in the MSCI new-inclusion reproduction: total debt divided by total assets, against a 30% threshold. See the methodology page for the official source and limitations.

What are INTERNATIONAL BUSINESS MACHINES CORP's key financial metrics?

INTERNATIONAL BUSINESS MACHINES CORP has a market capitalization of USD 222042M in its listing currency, trailing P/E ratio of 20.9, and revenue of $67.5B. The company maintains a gross margin of 58.1% and a net margin of 15.5%. Return on equity stands at 34.5%.

How often is the screening data updated?

Calculation date: 2026-08-31. Financial period: December 2025. These dates are shown separately because regenerating this page does not refresh the underlying data.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.