Benchmarks
IBM
IBM is based in Armonk, New York. The company was founded in 1910 as a computing-tabulating-recording company and changed its name to International Business Machines Corporation in 1924. (Yahoo.finance.com, 2007). IBM is an innovation company that serves the needs of enterprises and institutions worldwide. IBM seeks to deliver clients success by enabling its own capacity to innovate, so that it may differentiate its organizations to create unique competitive advantages (caps.fool.com, 2007). IBM offers short-term inventory and accounts receivable financing; lease and loan financing; and sells and leases used equipment. "The organization serves banking, insurance, education, government, healthcare, life sciences, aerospace and defense, automotive, chemical and petroleum, electronics, distribution, and communication markets" (Yahoo.finance.com, 2007).
Financial highlights are as follows:
"Profitability: Profit Margin is 10.38%; Operating Margin is 14.40%.
Management Effectiveness: Return on Assets is 8.69%; Return on Equity is 31.56%.
Income Statement: Revenue is $92.79 billion; Gross Profit is $38.30 billion; EBITDA is $19.20 billion; Quarterly Earnings Growth is 8%.
Balance Sheet: Total Cash is $10.78 billion; Total Debt is $23.95 billion; Total Debt/Equity is 0.861; Current Ratio is 1.155.
Cash Flow Statement: Operating Cash Flow is $14.91 billion; Leveraged Free Cash Flow is $6.15 billion.
Dividends and Splits: Payout Ratio is 20%. Last Split Factor was 2:1.
Trading information: Current Stock is trading at 114.81 (July 21, 2007); Beta = 1.81"
(Yahoo.finance.com, 2007).
Last year, (March) there was a similar issue facing IBM that is currently facing LEI. IBM decided to join forces with Hoplon Infotainment, Online Game Services Incorporated (OGSI) and Render Rocket under separate agreements to help them innovate in the gaming and animation industries. IBM responded by first...
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