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Using the following financial data of IBM Corporation for the years 2019, 2020, and 2021, perform the required analysis: 2019 2020 2021 Revenue $77,147 $73,620

Using the following financial data of IBM Corporation for the years 2019, 2020, and 2021, perform the required analysis:


2019

2020

2021

Revenue

$77,147

$73,620

$57,350

Cost of Revenue

$33,188

$30,870

$25,220

Gross Profit

$43,959

$42,750

$32,130

Operating Expenses

$29,218

$29,450

$23,100

Operating Income

$14,741

$13,300

$9,030

Net Income

$9,431

$7,729

$5,743



2019

2020

2021

Total Assets

$152,186

$155,059

$152,764

Total Liabilities

$121,353

$118,104

$109,705

Shareholders' Equity

$30,833

$36,955

$43,059

Requirements:

  1. Calculate the gross profit margin for each year.
  2. Determine the operating profit margin for each year.
  3. Calculate the net profit margin for each year.
  4. Compute the return on assets (ROA) for each year.
  5. Compute the return on equity (ROE) for each year.
  6. Analyze IBM Corporation's financial performance trend over these three years.

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