Plagiarism Checker X Originality Report

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Date: Friday, March 11, 2022

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/ Analytics Lab / Presented to Dr. Somnath Roy Name _SAP ID _Roll No _ _Eshan
Chatterjee _80512100254 _J023 _ _ IBM Introduction IBM is an American global
technology business based in Armonk, New York, with operations in more than 171
countries.

The Computing-Tabulating-Recording Company (CTR) was formed in 1911 in Endicott,

New York, by trust businessman Charles Ranlett Flint, and was renamed "International
Business Machines" in 1924. New York is where IBM was founded. IBM is a multinational
corporation that manufactures and sells computer hardware, middleware, and software,
as well as hosting and consulting services in a variety of fields, from mainframe
computers to nanotechnology. IBM is also a large research institution, having set the
record for the most yearly U.S.

patents generated by a firm for the past 28 years (as of 2020). With about 345,000
people as of 2020, IBM is one of the world's largest employers and one of the Dow
Jones Industrial Average's 30 businesses. Financial Statements Financial Statements
being used are Balance sheet for 2020, 2019, 2018,2017,2016 and Income Statement for
the years 2020, 2019, 2018 ,2017,2016.

Income Statement There are three types of revenue streams for IBM / Revenue from
services is the biggest contributor for IBM. Revenue from services – Here we can see
that the Revenue from services have been steadily decreasing in the past 5 years which
is a bad sign for IBM as it is the biggest contributor. This might lead to further downfall
in the coming up years.

/ Revenue from Sales – The revenue from sales has been relatively stable but has
decreased a bit from the past 4 years. As we can see from the graph the revenue from
sales is also on the way down. We cannot contribute all of it to covid as there was a
downfall before the pandemic struck too.

/ Revenue from Financing – Revenue from financing has faced quite a downfall in the
past years. This might signify that they are willing to spend more on the other revenue
streams than revenue from financing apart from this it can also signify that firms who
took the loans might have repaid it back and less fresh loans are being issued. Also, it is
the smallest contributor in the revenue.

/ By the sum total of all the above revenues total revenue of each year has decreased
from the year 2016 to 2020. / Even though the total costs have decreased over the past
5 years. From this we can understand that the revenue decrease is not in proportion
with the decrease in costs thus leading to the effect on gross profit which we would look
into in the further graph. As discussed before these both contributed to the gross profit
which has been steadily decreasing in the past 5 years.

It might be due to pandemic or the competition. / Expenses Moving on to the expense

part it shows that the expenses have continuously increased in the past years leading to
a lot of expenses in year 2020. / One of the main factors noticed in the expenses is the
SG&A which tells us about the Sales, General and Admin expenses.

This tells us the company is increasing it SG&A and might see a better growth in its
products and services in the future years. / Another expense that meets the eye is the
spending in R&D to keep its products up to date and also innovate for new products.
Even this expense has been continuously increasing which I believe is a good sign for
IBM.

/ The expenses have led to the net income facing a huge fall from the previous years /
Balance Sheet Basic Equation of Balance Sheet is : Total Assets = Total Liabilities +
Equity First, we will take a look at Assets Current Assets In the Cash and short-term
Investments, the growth has been increasing against the past year. / The total
receivables have gone down significantly this signifies that the clients might have paid
back the receivables and also the revenue has gone down.

/ The total inventory has gone up that might signify a delay in the selling of inventory.
There might be forecasting errors leading to mismanagement of inventory. / All of the
above factors and others combined to form the Total Current Assets which has gone
down significantly in the past 5 years. The major factor would be reduction in the total
receivables. / Non-Current Assets The total noncurrent assets have gone up quite a lot.
It is because of tangible assets like Property plant and equipment have gone up and
intangible assets like goodwill has also increased. / Total Assets The total Assets have
increased over time contributed by Current and Non-Current Assets. / Liabilities Current
Liabilities Short term debt The short-term Debt has gone down over the period of 5
years.

The short-term debt is a volatile factor and it can be attributed to the fact that the
short-term needs of the company is very volatile. / Total Current Liabilities The current
liabilities have been increasing in the past years / Non-Current Liabilities Long term
Debt – The total long-term debt has increased and this might mean they are investing
into newer tech and horizons. It may also have invested in more non-current assets like
property plant and equipment.

/ Total Non-current Liabilities Total Non-current Liabilities have also steadily increased /
Total Liabilities Total Liabilities have increased over the period of 5 years. This would not
be in favor of the company and might lead to the revenue decrease that the company
has faced in the past 5 years. / Equity Total Equity Total equity has gone up in the past 5
years / Total Liability + Total Equity = Total Assets /

INTERNET SOURCES:
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1% - academy.techrepublic.com › sales › the-complete
3% - en.wikipedia.org › wiki › IBM
2% - startuptalky.com › ibm-acquisitions
2% - www.interviewbit.com › ibm-interview-questions
2% - daytradrr.com › investing › company-known-as-big
2% - www.coursehero.com › file › 133382073
1% - www.teledyne.com › en-us › investors
<1% - www.uspsoig.gov › document › us-postal-service-sales
<1% - www.merriam-webster.com › dictionary › more than
1% - corporatefinanceinstitute.com › resources
<1% - www.vedantu.com › commerce › current-liabilities
<1% - quizlet.com › 344401734 › module-3-financing
<1% - www.5yearcharts.com › dow-jones-5-years-charts-of