IBM Essay Example | Topics and Well Written Essays - 500 words

IBM - Essay Example Market to book ratio of IBM is favourable at 11.32 times. On the other hand, the industry average is lower at only 4 times. Further, the above computations indicate that the difference between the performance of IBM and the industry’s average outcomes. In terms of price earnings ratio, the IBM price to earnings ratio is 13.33 times. On the other hand, the industry average generated the unfavorably lower 13 times price to earnings ratio (Crosson, 2011). Likewise, the above computations show the difference between the performance of IBM and the industry’s average outcomes. In terms of price earnings ratio, the IBM price to earnings ratio is 13.33 times. On the other hand, the industry average generated the unfavorably lower 13 times price to earnings ratio. The above table shows IBM’s performance, in relation to the performance of the company (Crosson, 2011). IBM’s year end 0.4 percent dividend yield for 2012. On the other hand, the industry average performed more favorably with its 3 percent dividend yield. The company’s inventory turnover ratio is 22.21 times. The ratio is more favourable to IBM than lesser 12 time periods. The above table also shows that the IBM entity generated a favourable day’s sales inventory of 16.21 days. The industry average of 30 days is less favourable compared to the IBM days sales production output. IBM generated a 20 percent net profit margin. The total amount is favourably higher than the 12 percent net profit margin generated by industry competitors. The company’s return on equity figure indicates the company generated a favourable 31 percent return on equity. The ratio is favourably higher than the industry average of 15 percent. The ratio deals with how long managem ent or the owner can recover the amount invested in the business. The above table indicates that IBM’s financial performance in terms of collecting the customer’s receivables (Warren, 2009). The above table shows