Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
International Business Machines
Physical assets are 6.7% of total assets, a light footprint. Capex is 0.22x depreciation while free cash flow yield is positive, which can mean an aging base that is still throwing off cash. ROIC is 14.6%, above an 8% cost-of-capital hurdle.
Technology and communication names are often asset-light, with fixed-asset turnover above 5x. This name is at 7.48x.
Physical asset ratio
6.7%Physical asset ratio · 2025-12-31(Net PP&E + inventory) / total assetsNet PP&E$9.03BpropertyPlantEquipmentInventory$1.22BinventoryTotal assets$151.88BtotalAssetsResult 6.7%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
7.48xFixed asset turnover · 2025-12-31Revenue / net PP&ERevenue$67.54BtotalRevenueNet PP&E$9.03BpropertyPlantEquipmentResult 7.48x
Revenue per dollar of the physical asset base.
Capex / D&A
0.22xCapex / D&A · 2025-12-31Capital expenditures / depreciation and amortizationCapex$1.09BcapitalExpendituresD&A$5.02BdepreciationAndAmortizationResult 0.22x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
-$48.88Tangible book / share · 2025-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$151.88BtotalAssetsGoodwill$67.72BgoodWillIntangibles$11.39BintangibleAssetsLiabilities$119.14BtotalLiabTangible book-$46.37BShares948,700,000commonStockSharesOutstandingResult -$48.88
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
—Price / tangible bookPrice / tangible book per sharePrice$245.00Latest quoteTangible book / share-$48.882025-12-31Tangible book per share is not positive, so the multiple is left blank.Result —
Price $245.00.
Fixed-charge coverage
1.94xFixed-charge coverage · 2025-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$17.28BebitdaCapex$1.09BcapitalExpendituresInterest$1.94BinterestExpenseShort-term debt$6.42BshortLongTermDebtEBITDA − capex$16.19BPrincipal due is the current portion of debt.Result 1.94x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
5.2%Free cash flow yield · 2025-12-31Latest free cash flow / current market capFree cash flow$12.10BfreeCashFlowMarket cap$231.55BMarketCapitalizationResult 5.2%
Latest free cash flow divided by current market cap ($231.55B).
ROIC
14.6%ROIC · 2025-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$12.49BoperatingIncomeTax expense-$242.00MincomeTaxExpensePretax income$10.33BincomeBeforeTaxTax rate0.0%Equity$32.65BtotalStockholderEquityDebt$67.15BshortLongTermDebtTotalCash$14.47BcashAndShortTermInvestmentsInvested capital$85.33BResult 14.6%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 1.38x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 27.7%Physical asset ratio · 2018-12-31(Net PP&E + inventory) / total assetsNet PP&E$32.46BpropertyPlantAndEquipmentNetInventory$1.68BinventoryTotal assets$123.38BtotalAssetsResult 27.7% | 2.45xFixed asset turnover · 2018-12-31Revenue / net PP&ERevenue$79.59BtotalRevenueNet PP&E$32.46BpropertyPlantAndEquipmentNetResult 2.45x | 0.88xCapex / D&A · 2018-12-31Capital expenditures / depreciation and amortizationCapex$3.96BcapitalExpendituresD&A$4.48BdepreciationAndAmortizationResult 0.88x | -$24.47Tangible book / share · 2018-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$123.38BtotalAssetsGoodwill$36.27BgoodWillIntangibles$3.09BintangibleAssetsLiabilities$106.45BtotalLiabTangible book-$22.42BShares916,300,000commonStockSharesOutstandingResult -$24.47 | 1.15xFixed-charge coverage · 2018-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$16.55BebitdaCapex$3.96BcapitalExpendituresInterest$686.00MinterestExpenseShort-term debt$10.21BshortTermDebtEBITDA − capex$12.58BPrincipal due is short-term debt.Result 1.15x | $11.28BFree cash flow · 2018-12-31Reported free cash flowOperating cash flow$15.25BtotalCashFromOperatingActivitiesCapex$3.96BcapitalExpendituresFree cash flow$11.28BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $11.28B | 20.0%ROIC · 2018-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$13.22BoperatingIncomeTax expense$2.62BincomeTaxExpensePretax income$11.34BincomeBeforeTaxTax rate23.1%Equity$16.93BtotalStockholderEquityDebt$45.81BshortLongTermDebtTotalCash$12.00BcashAndShortTermInvestmentsInvested capital$50.75BResult 20.0% | 0.41xEBIT / PP&E · 2018-12-31Operating income / net PP&EOperating income$13.22BoperatingIncomeNet PP&E$32.46BpropertyPlantAndEquipmentNetResult 0.41x |
| 2019 | 22.1%Physical asset ratio · 2019-12-31(Net PP&E + inventory) / total assetsNet PP&E$32.03BpropertyPlantAndEquipmentNetInventory$1.62BinventoryTotal assets$152.19BtotalAssetsResult 22.1% | 1.80xFixed asset turnover · 2019-12-31Revenue / net PP&ERevenue$57.71BtotalRevenueNet PP&E$32.03BpropertyPlantAndEquipmentNetResult 1.80x | 0.48xCapex / D&A · 2019-12-31Capital expenditures / depreciation and amortizationCapex$2.91BcapitalExpendituresD&A$6.06BdepreciationAndAmortizationResult 0.48x | -$58.77Tangible book / share · 2019-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$152.19BtotalAssetsGoodwill$58.22BgoodWillIntangibles$15.24BintangibleAssetsLiabilities$131.20BtotalLiabTangible book-$52.47BShares892,800,000commonStockSharesOutstandingResult -$58.77 | 1.19xFixed-charge coverage · 2019-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$14.61BebitdaCapex$2.91BcapitalExpendituresInterest$1.02BinterestExpenseShort-term debt$8.80BshortLongTermDebtEBITDA − capex$11.70BPrincipal due is the current portion of debt.Result 1.19x | $11.86BFree cash flow · 2019-12-31Reported free cash flowOperating cash flow$14.77BtotalCashFromOperatingActivitiesCapex$2.91BcapitalExpendituresFree cash flow$11.86BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $11.86B | 9.8%ROIC · 2019-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$7.54BoperatingIncomeTax expense$60.00MincomeTaxExpensePretax income$7.21BincomeBeforeTaxTax rate0.8%Equity$20.99BtotalStockholderEquityDebt$64.28BshortLongTermDebtTotalCash$8.87BcashAndShortTermInvestmentsInvested capital$76.40BResult 9.8% | 0.24xEBIT / PP&E · 2019-12-31Operating income / net PP&EOperating income$7.54BoperatingIncomeNet PP&E$32.03BpropertyPlantAndEquipmentNetResult 0.24x |
| 2020 | 10.6%Physical asset ratio · 2020-12-31(Net PP&E + inventory) / total assetsNet PP&E$14.73BpropertyPlantAndEquipmentNetInventory$1.84BinventoryTotal assets$155.97BtotalAssetsResult 10.6% | 5.00xFixed asset turnover · 2020-12-31Revenue / net PP&ERevenue$73.62BtotalRevenueNet PP&E$14.73BpropertyPlantAndEquipmentNetResult 5.00x | 0.45xCapex / D&A · 2020-12-31Capital expenditures / depreciation and amortizationCapex$3.04BcapitalExpendituresD&A$6.70BdepreciationAndAmortizationResult 0.45x | -$58.76Tangible book / share · 2020-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$155.97BtotalAssetsGoodwill$59.62BgoodWillIntangibles$13.80BintangibleAssetsLiabilities$135.25BtotalLiabTangible book-$52.69BShares896,600,000commonStockSharesOutstandingResult -$58.76 | 1.14xFixed-charge coverage · 2020-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$12.71BebitdaCapex$3.04BcapitalExpendituresInterest$1.29BinterestExpenseShort-term debt$7.18BshortLongTermDebtEBITDA − capex$9.67BPrincipal due is the current portion of debt.Result 1.14x | $15.16BFree cash flow · 2020-12-31Reported free cash flowOperating cash flow$18.20BtotalCashFromOperatingActivitiesCapex$3.04BcapitalExpendituresFree cash flow$15.16BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $15.16B | 9.9%ROIC · 2020-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$6.90BoperatingIncomeTax expense-$864.00MincomeTaxExpensePretax income$4.64BincomeBeforeTaxTax rate0.0%Equity$20.73BtotalStockholderEquityDebt$62.90BshortLongTermDebtTotalCash$13.81BcashAndShortTermInvestmentsInvested capital$69.81BResult 9.9% | 0.47xEBIT / PP&E · 2020-12-31Operating income / net PP&EOperating income$6.90BoperatingIncomeNet PP&E$14.73BpropertyPlantAndEquipmentNetResult 0.47x |
| 2021 | 8.0%Physical asset ratio · 2021-12-31(Net PP&E + inventory) / total assetsNet PP&E$8.92BpropertyPlantEquipmentInventory$1.65BinventoryTotal assets$132.00BtotalAssetsResult 8.0% | 6.43xFixed asset turnover · 2021-12-31Revenue / net PP&ERevenue$57.35BtotalRevenueNet PP&E$8.92BpropertyPlantEquipmentResult 6.43x | 0.37xCapex / D&A · 2021-12-31Capital expenditures / depreciation and amortizationCapex$2.38BcapitalExpendituresD&A$6.42BdepreciationAndAmortizationResult 0.37x | -$54.34Tangible book / share · 2021-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$132.00BtotalAssetsGoodwill$55.64BgoodWillIntangibles$12.51BintangibleAssetsLiabilities$113.01BtotalLiabTangible book-$49.16BShares904,641,001commonStockSharesOutstandingResult -$54.34 | 1.39xFixed-charge coverage · 2021-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$13.44BebitdaCapex$2.38BcapitalExpendituresInterest$1.16BinterestExpenseShort-term debt$6.79BshortLongTermDebtEBITDA − capex$11.06BPrincipal due is the current portion of debt.Result 1.39x | $10.42BFree cash flow · 2021-12-31Reported free cash flowOperating cash flow$12.80BtotalCashFromOperatingActivitiesCapex$2.38BcapitalExpendituresFree cash flow$10.42BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $10.42B | 10.0%ROIC · 2021-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$6.83BoperatingIncomeTax expense$124.00MincomeTaxExpensePretax income$4.84BincomeBeforeTaxTax rate2.6%Equity$19.00BtotalStockholderEquityDebt$55.14BshortLongTermDebtTotalCash$7.25BcashAndShortTermInvestmentsInvested capital$66.89BResult 10.0% | 0.77xEBIT / PP&E · 2021-12-31Operating income / net PP&EOperating income$6.83BoperatingIncomeNet PP&E$8.92BpropertyPlantEquipmentResult 0.77x |
| 2022 | 7.7%Physical asset ratio · 2022-12-31(Net PP&E + inventory) / total assetsNet PP&E$8.21BpropertyPlantEquipmentInventory$1.55BinventoryTotal assets$127.24BtotalAssetsResult 7.7% | 7.37xFixed asset turnover · 2022-12-31Revenue / net PP&ERevenue$60.53BtotalRevenueNet PP&E$8.21BpropertyPlantEquipmentResult 7.37x | 0.39xCapex / D&A · 2022-12-31Capital expenditures / depreciation and amortizationCapex$1.86BcapitalExpendituresD&A$4.80BdepreciationAndAmortizationResult 0.39x | -$49.45Tangible book / share · 2022-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$127.24BtotalAssetsGoodwill$55.95BgoodWillIntangibles$11.18BintangibleAssetsLiabilities$105.22BtotalLiabTangible book-$45.11BShares912,269,000commonStockSharesOutstandingResult -$49.45 | 0.89xFixed-charge coverage · 2022-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$7.17BebitdaCapex$1.86BcapitalExpendituresInterest$1.22BinterestExpenseShort-term debt$4.76BshortLongTermDebtEBITDA − capex$5.31BPrincipal due is the current portion of debt.Result 0.89x | $8.58BFree cash flow · 2022-12-31Reported free cash flowOperating cash flow$10.44BtotalCashFromOperatingActivitiesCapex$1.86BcapitalExpendituresFree cash flow$8.58BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $8.58B | 12.2%ROIC · 2022-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$8.17BoperatingIncomeTax expense-$626.00MincomeTaxExpensePretax income$1.16BincomeBeforeTaxTax rate0.0%Equity$21.94BtotalStockholderEquityDebt$54.01BshortLongTermDebtTotalCash$8.74BcashAndShortTermInvestmentsInvested capital$67.22BResult 12.2% | 1.00xEBIT / PP&E · 2022-12-31Operating income / net PP&EOperating income$8.17BoperatingIncomeNet PP&E$8.21BpropertyPlantEquipmentResult 1.00x |
| 2023 | 7.3%Physical asset ratio · 2023-12-31(Net PP&E + inventory) / total assetsNet PP&E$8.72BpropertyPlantEquipmentInventory$1.16BinventoryTotal assets$135.24BtotalAssetsResult 7.3% | 7.09xFixed asset turnover · 2023-12-31Revenue / net PP&ERevenue$61.86BtotalRevenueNet PP&E$8.72BpropertyPlantEquipmentResult 7.09x | 0.44xCapex / D&A · 2023-12-31Capital expenditures / depreciation and amortizationCapex$1.92BcapitalExpendituresD&A$4.40BdepreciationAndAmortizationResult 0.44x | -$52.71Tangible book / share · 2023-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$135.24BtotalAssetsGoodwill$60.18BgoodWillIntangibles$11.04BintangibleAssetsLiabilities$112.63BtotalLiabTangible book-$48.60BShares922,074,000commonStockSharesOutstandingResult -$52.71 | 0.70xFixed-charge coverage · 2023-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$7.51BebitdaCapex$1.92BcapitalExpendituresInterest$1.61BinterestExpenseShort-term debt$6.43BshortLongTermDebtEBITDA − capex$5.60BPrincipal due is the current portion of debt.Result 0.70x | $11.51BFree cash flow · 2023-12-31Operating cash flow − capexOperating cash flow$13.43BtotalCashFromOperatingActivitiesCapex$1.92BcapitalExpendituresFree cash flow$11.51BNot reportedReported free cash flow matched operating cash flow, so capex was subtracted.Result $11.51B | 9.4%ROIC · 2023-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$7.51BoperatingIncomeTax expense$1.18BincomeTaxExpensePretax income$8.69BincomeBeforeTaxTax rate13.5%Equity$22.53BtotalStockholderEquityDebt$59.94BshortLongTermDebtTotalCash$13.44BcashAndShortTermInvestmentsInvested capital$69.03BResult 9.4% | 0.86xEBIT / PP&E · 2023-12-31Operating income / net PP&EOperating income$7.51BoperatingIncomeNet PP&E$8.72BpropertyPlantEquipmentResult 0.86x |
| 2024 | 7.4%Physical asset ratio · 2024-12-31(Net PP&E + inventory) / total assetsNet PP&E$8.93BpropertyPlantAndEquipmentNetInventory$1.29BinventoryTotal assets$137.18BtotalAssetsResult 7.4% | 7.03xFixed asset turnover · 2024-12-31Revenue / net PP&ERevenue$62.75BtotalRevenueNet PP&E$8.93BpropertyPlantAndEquipmentNetResult 7.03x | 0.36xCapex / D&A · 2024-12-31Capital expenditures / depreciation and amortizationCapex$1.69BcapitalExpendituresD&A$4.67BdepreciationAndAmortizationResult 0.36x | -$46.92Tangible book / share · 2024-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$137.18BtotalAssetsGoodwill$60.71BgoodWillIntangibles$10.66BintangibleAssetsLiabilities$109.78BtotalLiabTangible book-$43.97BShares937,200,000commonStockSharesOutstandingResult -$46.92 | 1.54xFixed-charge coverage · 2024-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$12.18BebitdaCapex$1.69BcapitalExpendituresInterest$1.71BinterestExpenseShort-term debt$5.09BshortLongTermDebtEBITDA − capex$10.49BPrincipal due is the current portion of debt.Result 1.54x | $11.76BFree cash flow · 2024-12-31Reported free cash flowOperating cash flow$13.45BtotalCashFromOperatingActivitiesCapex$1.69BcapitalExpendituresFree cash flow$11.76BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $11.76B | 14.2%ROIC · 2024-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$10.07BoperatingIncomeTax expense-$218.00MincomeTaxExpensePretax income$5.80BincomeBeforeTaxTax rate0.0%Equity$27.31BtotalStockholderEquityDebt$58.40BshortLongTermDebtTotalCash$14.59BcashAndShortTermInvestmentsInvested capital$71.11BResult 14.2% | 1.13xEBIT / PP&E · 2024-12-31Operating income / net PP&EOperating income$10.07BoperatingIncomeNet PP&E$8.93BpropertyPlantAndEquipmentNetResult 1.13x |
| 2025 | 6.7%Physical asset ratio · 2025-12-31(Net PP&E + inventory) / total assetsNet PP&E$9.03BpropertyPlantEquipmentInventory$1.22BinventoryTotal assets$151.88BtotalAssetsResult 6.7% | 7.48xFixed asset turnover · 2025-12-31Revenue / net PP&ERevenue$67.54BtotalRevenueNet PP&E$9.03BpropertyPlantEquipmentResult 7.48x | 0.22xCapex / D&A · 2025-12-31Capital expenditures / depreciation and amortizationCapex$1.09BcapitalExpendituresD&A$5.02BdepreciationAndAmortizationResult 0.22x | -$48.88Tangible book / share · 2025-12-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$151.88BtotalAssetsGoodwill$67.72BgoodWillIntangibles$11.39BintangibleAssetsLiabilities$119.14BtotalLiabTangible book-$46.37BShares948,700,000commonStockSharesOutstandingResult -$48.88 | 1.94xFixed-charge coverage · 2025-12-31(EBITDA − capex) / (interest + short-term debt)EBITDA$17.28BebitdaCapex$1.09BcapitalExpendituresInterest$1.94BinterestExpenseShort-term debt$6.42BshortLongTermDebtEBITDA − capex$16.19BPrincipal due is the current portion of debt.Result 1.94x | $12.10BFree cash flow · 2025-12-31Reported free cash flowOperating cash flow$13.19BtotalCashFromOperatingActivitiesCapex$1.09BcapitalExpendituresFree cash flow$12.10BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $12.10B | 14.6%ROIC · 2025-12-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$12.49BoperatingIncomeTax expense-$242.00MincomeTaxExpensePretax income$10.33BincomeBeforeTaxTax rate0.0%Equity$32.65BtotalStockholderEquityDebt$67.15BshortLongTermDebtTotalCash$14.47BcashAndShortTermInvestmentsInvested capital$85.33BResult 14.6% | 1.38xEBIT / PP&E · 2025-12-31Operating income / net PP&EOperating income$12.49BoperatingIncomeNet PP&E$9.03BpropertyPlantEquipmentResult 1.38x |
- Receivables are larger than the physical asset base, so a finance or credit book may sit outside the physical ratio and inside the debt used for coverage.
- Principal due is the current portion of debt.
Latest year inputs (2025)
Net PP&E: $9.03B
Inventory: $1.22B
Total assets: $151.88B
Goodwill: $67.72B
Intangibles: $11.39B
Liabilities: $119.14B
Tangible book: -$46.37B
Shares: 948,700,000
Revenue: $67.54B
Capex: $1.09B
D&A: $5.02B
EBITDA: $17.28B
Interest: $1.94B
Short-term debt: $6.42B
Free cash flow: $12.10B
Operating income: $12.49B
Invested capital: $85.33B
Tax rate: 0.0%