IBM Business Segments, Risk Factors, and Contingent Liabilities

In this week’s video blog post, I look at IBM’s business model, top 5 risk factors, and contingent liabilities outlined in the company’s annual report.

As value investors, it is important to review the company’s fundamentals before deciding to invest in any company. Hope you all find this 16 minute video blog interesting. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.

IBM is divided into 5 business segments –  Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems and Global Financing. IBM is trying to integrate Artificial Intelligence into its services, and the company’s goal is to help transform traditional businesses into cognitive enterprises.

The top 5 risk factors I discussed are:

  1. Downturn in Economic Environment and Client Spending Budgets Could Impact the Company’s Business
  2. Cybersecurity and Privacy Considerations Could Impact the Company’s Business
  3. Due to the Company’s Global Presence, Its Business and Operations Could Be Impacted by Local Legal, Economic, Political, Health and Other Conditions
  4. The Company’s Results of Operations and Financial Condition Could Be Negatively Impacted by Its U.S. and non-U.S. Pension Plans
  5. The Company’s Financial Performance Could Be Impacted by Changes in Market Liquidity Conditions and by Customer Credit Risk on Receivables
IBM Fundamental Analysis – Business Segments, Risk Factors, and Contingent Liabilities

0:00 Introduction
0:32 Business Overview
2:35 Business Segments
6:08 Competition
7:56 Top 5 Risk Factors
13:11 Contingent Liabilities – Court Cases
15:47 Ending

If you found my video above helpful and interesting, please do like, share, and subscribe to the YouTube channel

Audio / Podcast


10K Annual Report: here

Morningstar Key Ratios Link: here.

Company overview: International Business Machines Corporation is an American multinational technology company headquartered in Armonk, New York. It was founded in 1911 in Endicott, New York as the Computing-Tabulating-Recording Company and was renamed “International Business Machines” in 1924.

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Superior North LLC’s content is for educational purposes only. The calculators, videos, recommendations, and general investment ideas are not to be actioned with real money. Vyom Joshi is not a professional money manager or a financial advisor. Contact a professional and certified financial advisor before making any financial decisions. Please review the Disclaimer and Terms and Conditions.

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