https://finance.yahoo.com/quote/IBM/cash-flow?p=IBM
Trailing 12 Months
Cash Flow From Operations: $10.4B
Long Term Debt Payments: $6.8B
Cash Dividends Paid: $5.9B
$2.3B more going out than coming in.
Nothing left to invest in the business.
4 replies (most recent on top)
Why the hate on quantum? Quantum isn't getting that much funding - their budget isn't the reason why your product/area is underfunded, that's just IBM.
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What is Quantum's drain?
Why isn't the market punishing them for not selling Quantum?
Curious minds want to know
- the dolphins
IBM’s fundamental problem isn’t the servicing of debt. They borrowed last year when rates were low to bridge them thru 2024. IBM’s fundamental problem is two fold
- They refuse to acknowledge that management is exceedingly overmanned and is a drain on the company. It’s very difficult to redeploy managers effectively as their skill set has become stale. Better to just RA them.
- IBM refuses to exit non-strategic low margin/high overhead businesses. Until management comes to terms with the idea, that they can’t be all things to all companies anymore, IBM will struggle. IBM needs to execute on their newly adopted strategy (hybrid cloud/AI/SW modernization) within enterprises and divorce their legacy (low margin/high overhead) clients