INTERNATIONAL BUSINESS MACHINES CORP (IBM) — payout ratio, three ways
Fiscal year ending 2025-12-31 · sector Technology · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 60.1% | The figure most screeners publish. |
| Operating cash flow | 47.4% | Before capital spending, so it understates the payout that free cash flow shows. |
| Free cash flow | 51.7% | What is left after maintaining the business. |
Spread between highest and lowest: 13 percentage points. Same filings, different denominators.
Coverage rating 34 / 100 — Strained. ? Peer standing 8/50Direction 10/30Stability 16/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 51.7% |
| 2024-12-31 | 49.6% |
| 2023-12-31 | 47.6% |
| 2022-12-31 | 65.4% |
| 2021-12-31 | 54.7% |
| 2020-12-31 | 37.2% |
Among the 42 technology companies here, only 17% pay out a larger share on this basis — this is at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $6.71 ÷ diluted EPS $11.17
- Operating cash flow — dividends paid $6,255.0m ÷ operating cash flow $13,193.0m
- Free cash flow — dividends paid $6,255.0m ÷ (operating cash flow $13,193.0m − capex $1,091.0m)
Where the figures came from
- 10-K filed 2026-02-24 · accession
0000051143-26-000010
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.