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Sales Analysis IBM
In the financial year Sep 30,23, International Business Machine sales were sharply down 15.1% from $17.38 billion last year to $14.75 billion. We predict International Business Machine sales to go down 3.4% to around $14.25 billion during the next 12 months. The share price of International Business Machine has little sensitivity to increases to sales with forecast sales alone decreasing the share price by 0.03%.
International Business Machine currently has 282,200 employees and with sales of $14.75 billion this equates to sales of $52.28 thousand per employee.
Profitability
For Sep 30,23 Cost of goods sold was sharply down 3.1% from $6.94 billion last year to $6.73 billion. This cost represented 45.61% of overall sales up from 39.94% last year and is expected to fall to 45.61% next year. We predict Cost of goods sold to move down 3.4% to around $6.5 billion during the next 12 months.
Selling General and Administrative expenses are down 8.56% from last year, totaling $3.91 billion and we expect SGA to move down 11.9% to around $3.45 billion during the next 12 months.
This meant gross income was $8.02 billion making a gross profit margin of 54.39% of sales, which we expect to be 50.48% next year. The share price of International Business Machine has little sensitivity to increases to gross profit margin.
With 282,200 employees, the gross income is $28.43 thousand per employee.
Earnings
EBIT was 15.49% of sales and sharply decreased by 45.22% from last year's $4.17 billion to $2.29 billion this year and we expect EBIT to be $2.07 billion next year.
Pre-tax income was 12.7% of sales and for this year were $1873.0 million, down 50.17% from $3.76 billion last year and we expect it to be $1437.13 million next year. International Business Machine paid $159.0 million tax. Its effective tax rate was 8.49% from 12.61% last year and estimated as 10.89% next year.
Including discontinued income, after tax income was 11.55% of sales and are down 48.18% from last year, totaling $1704.0 million and we expect it to be $1236.43 million next year. Return on Equity was unchanged since last year at inf, and we expect it to be 1236.43 million next year.