HI AMAZING TUTOR HEROS!!! Need your help with these questions below:
IBM Required: 10. ll. 12. Compute the ve component ratios of a decomposition of ROE (net prot margin, total asset turnover, return on assets, nancial leverage, return on equity) for IBM's scal years 2016-2019 (present your results) What patterns do you see? What are the implications of these patterns? Compute each segment's revenue as a percentage of [BM total revenues by quarter. What patterns do you see? What are the implications of these patterns? Compute the gross margin percentage, by quarter, for each of IBM's segments (present your results). What patterns do you see? What are the implications of these patterns? Compute the year-toyear change, by quarter, in Revenues for each of IBM's business segments (present your results). What patterns to you see? What are the implications of these patterns? Compute the year-to-year change in gross margin percentage, by quarter, for each of IBM's segments (present your results). What patterns to you see? What are the implications of these patterns? Which segment(s) are positively (negatively) inuencing IBM's recent performance? What are the implications of this? What does your analysis indicate regarding IBM's future performance? To facilitate your analysis, the data below are inserted into this document as an Excel Objects. STATEMENT OF FINANCIAL POSITION Fiscal Year: 2016 2017 2018 2019 ASSETS Cash & Equivalents 8,527 12,580 12.222 9,009 Receivables - Total (Net) 29.245 31,630 31.034 23,795 Inventories - Total 1,553 1.583 1,682 1,619 Current Assets - Othe 4,563 3,942 4,208 3,997 Ourrent Assets - Total 3,888 49,735 19,146 38,420 Plant, Property & Equip (Net) 10,830 1.116 0,792 10,010 Investments at Equity 85 90 192 2,074 Investments and Advances - Ot 9,471 10,052 9,541 8,712 Intangibles 0,887 10.530 9,353 3,456 Deferred Charges 4,761 6.480 7.342 7.656 Assets - Other 7,548 7,353 7,016 11,861 TOTAL ASSETS 117,470 25,356 123,382 52, 186 LIABILITIES Accounts Payable 6,209 6,451 6,558 6,366 Notes Payable 1,27 1,773 3,156 Accrued Expenses Taxes Payable 3,235 4,219 3,046 2,839 Debt (Long-Term) Due In One Ye 6,239 5.214 7.051 8,797 Other Current Liabilities 19,318 19,706 18,416 19,789 Total Current Liabilities 36,275 37,363 38,227 37,70 Long Term Debt 34.65 39.837 35,605 54,102 Deferred Taxes (Balance Sheet) 425 545 3,696 3,851 Liabilities - Other 27,72 29,88 28,925 28,784 TOTAL LIABILITIES 99,078 107,631 106,453 131,202 SHAREHOLDERS EQUITY Common Stock 445 446 447 448 Capital Surplus 53,490 54,120 54,704 55,447 Retained Earnings (Net Other) 123,361 26.534 129,716 134,357 Less: Treasury Stock 59,050 163,506 168,071 169,413 Shareholders Equity - Parent 8.246 17,594 16,796 20,841 Noncontrolling Interest - Nonrede 131 133 TOTAL SHAREHOLDERS EQUITY 18,392 17,725 16,929 20,985 INCOME STATEMENT Fiscal Year: 2016 2017 2018 2,019 Sales (Net) 79,920 3,139 79,591 77,147 Cost of Goods Sold 37,17 38,209 37,856 40,659 Gross Profit 12.749 40,930 41,735 36,48 Selling, General, & Admin Exper 26,360 25.476 24,294 20,604 Operating Income Before Deprecia 16,389 15.454 17,441 15,884 Depreciation, Depletion, & Amo 4,381 4.541 4,480 5.989 Operating Income After Depreciati 2008 10.913 12 961 9,895 Interest Expense 1,208 1,278 1,483 1,344 Non-Operating Income/ Expense 1,709 (137) (968) Special Items (8) 39 (16) (648 ) Pretax Income 2,314 11,383 11,325 10,166 Income Taxes - Total 449 5 ,642 2.619 731 Minority Interest (16) (17 ) (17) Income Before B&DO 11,881 ,758 8,723 9,435 Discontinued Operations (9) (5) (4 ) Net Income (Loss) 1,872 5,753 8,728 9,431 Primary EPS 12.44 6.17 9.56 10.63 Shares for Primary EPS 55.423 932.828 12.04 87.235 Median Analyst Expectation 13.51 13.80 13.80 12.80 Business Segments Mar-19 Jun-19 ep-19 Dec-19 Revenue Mar-16 Dec-18 un-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 5.037 5.645 5,280 7,238 Cloud & Cognitive Software 3,979 4,675 4,235 5,297 4.062 4,559 4,400 5,432 5,116 5,470 4,962 6.661 4,006 4,09 4,093 4,15 4,115 4,135 4,076 4,269 4,119 4 15 4,117 4,243 Global Business Services 4,131 4,255 4,191 4,121 8,748 9,308 8,40 8,457 9,198 7.421 7,325 7,101 7,299 6,875 6.837 6,700 6,949 Global Technology Services 8,424 8,857 8,216 1.675 1.950 1,558 2530 1,395 1,747 1,721 3,332 500 2177 1,736 2,621 1,328 753 481 3,042 Systems 647 415 450 405 394 388 402 406 351 343 301 Global Financing 410 424 412 405 507 107 Other 66 76 81 66 71 65 56 (20) 515 503 493 417 4,200 Total Revenue 8,684 20,238 19.226 21,770 18.156 19.289 19,153 22,543 19,072 18,756 18,756 21,760 8,182 19.161 8,028 21,777 Gross Profit Margin Cloud & Cognitive Software 3,263 3,843 3,405 4,381 3,140 3,602 3,432 4,302 3,904 4,250 3,776 5,289 3,783 4,364 3,912 5,732 1,119 1,109 945 1,020 1,117 1,075 1,187 1,079 1,167 Global Business Services 2317 2,446 Global Technology Services 3,445 3,685 3,674 3,993 3,196 3,413 3,476 3,762 2,419 2,432 2.627 2,547 2.352 2,399 Systems 958 1,102 796 1.440 663 921 922 1,856 656 1,102 915 1.331 614 938 779 1,704 174 164 156 129 128 108 133 139 105 102 117 142 123 127 107 Global Financing Other 7,770 8,796 8,791 10,866 8,239 8,628 8,797 10,684 8,036 9,006 8,329 Total Gross Profit Margin 8, 688 9.694 9,017 10,885 11,106
