Evaluate IBM’s earnings per Share (basic), and identify the factors most responsible for the increase in IBM’s earnings.

Business & Finance Homework Help| Business & Finance homework help

IBM’s earnings per share (basic) for 2020 was $9.90, representing a 4.2% increase from the prior year’s EPS of $9.50. This growth can be attributed to several factors, including strategic cost reduction initiatives, higher demand for cloud services and increased profit margins for some businesses like Global Technology Services or Cognitive Solutions.

IBM’s strong software segment performance has also benefited, which drives higher revenues and margins for the entire organization. Finally, the company’s focus on digital transformation solutions has helped to boost many of its software products, leading to improved profitability and an overall better outlook for the business going forward.

This is a snippet preview, get a complete custom solution
Access a Complete Custom-Written Paper from Our Writers, Now!!