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FINANCIAL

Annex Research Annual Analysis of IBM’s Historical Results

IBM: In a League of Its Own

Big Blue Set to Pass $1.5 Trillion in Cumulative Revenues in 2001

PHOENIX, Feb. 15 - There aren’t many companies around with records and traditions like IBM’s.  The company seems to be in a league of its own. 

Six years ago (in 1995), Big Blue joined a very exclusive club of trillion-dollar global corporations (in terms of cumulative revenues).  Last year (in 2000), IBM set another record, by exceeding $100 billion in cumulative earnings over its 88-year history (1912-2000).  This year, IBM is set to surpass $1.5 trillion in cumulative revenues, a milestone that will probably occur at some point in the third quarter (see Table 2).

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Meanwhile... despite the fact that the 1990s represented a decade of slowest growth in the company’s 88-year history, IBM still managed to outpace the U.S. GDP by almost twofold (11.8% vs. 6.3% compounded annually - 1912-2000). 

IBM earnings similarly grew at 11.5% compounded annually during the same period.  But that’s down from a peak of 14% compounded growth rate that IBM reached in 1970s.

But it was in the 1980s, thanks in part to its “great lease base sale,” that IBM earned the most money in absolute figures for its shareholders - $49.5 billion.  The 1990s came in second with $30.7 billion in cumulative net profits, followed by the 1970s with $20 billion.

It was the 1950s and the 1960s, however, that were the IBM “Golden Era.”  That’s when the net earnings grew at compound annual rates of over 18%, while revenues surged at 24% and 16% respectively.  IBM’s 1950s aggregate revenues and earnings were 6.1-fold and 4.3-fold higher than those in the decade before, while the corresponding 1960s figures were 5.3-fold and 6.5-fold greater than those in the 1950s (see the chart and Table 3).

The 1990s, on the other hand, were a period of slowest growth in IBM’s history.  Cumulative revenues were only 1.4 times the corresponding total in the 1980s.

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Our report then goes on analyze IBM latest and historical results on a segment-by-segment basis

Here are some of the sub-headings from the rest of this Annex Bulletin...

Business Segment Analysis

 Global Services...  

Enterprise Servers... 

Personal Systems...  I

 Software...

 Technology...

 Summary...

[...]

"That's all she wrote," we're afraid, for those of you who are NOT Annex Research clients, and who are now reading the complete Annex Bulletin, along with many  charts and tables which back up our analysis in the print edition of this particular report.

To find our how you can become one of our clients, and read the rest of this and other Annex Bulletins, click on . Thank you.

Happy bargain hunting!

Bob Djurdjevic






 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volume XVII, No. 2001-05
February 15, 2001

Editor: Bob Djurdjevic
Published by Annex Research
e-mail: annex@djurdjevic.com

P.O. Box 97100,      Phoenix, Arizona 85060-7100
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