Ibm, The Oldest Of The Fortune 500 Companies With Operations All Over The World Essay

2877 WordsAug 1, 201512 Pages
Executive Summary IBM is among the oldest of the Fortune 500 companies with operations all over the world. The company is renowned for its capacity to transform careers and deliver innovative technologies and business solutions. Over the past decade IBM has undergone a transformation of its own as it shifts from hardware development to cloud computing and business consulting. The company sees this niche market as having huge potential to carry it forward into the ensuing decades. As IBM undergoes this transition its financial reports have been lackluster – to the short-term investor. The company’s growth-per-share from 2010 to 2013 was far below the S&P 500. A financial ratios analysis indicates that IBM’s short-term position is not ideal for short-term investments. However, the company’s debt-to-equity ratio indicates that it is poised to weather challenging times. Moreover, IBM’s long history of innovation (the company is among the top recipients of U.S. patents each year) means the company is very likely to invent disruptive technologies that give the company competitive advantage. It is recommended that IBM shares be acquired during this temporary downturn in its stock price. Historically the company has bounced back from price slumps, and at present the company has a very solid business strategy transition it is undergoing. Once its new businesses are fully operational the company is expected to see great returns. Investors like Warren Buffett are increasing their

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