How does IBM's 2024 expense ratio compare to 2023?

IBM's 2024 expense ratio is not directly comparable to 2023 due to differences in reporting and data availability. However, we can analyze the trends and changes in IBM's expenses and revenue to infer the comparison.

1. Trends in Total Expenses:
   • In 2023, total expenses decreased to $6,150 million from $11,931 million, indicating a significant reduction in expenses.
   • In 2024, while the full-year results are not detailed by quarter, the fourth quarter saw operating expenses amounting to $6.73 billion, up from $6.5 billion, suggesting an increase in expenses towards the end of the year.
2. Operating Expenses vs. Revenue Growth:
   • The Software segment contributed $26.3 billion to the total revenue in 2023, and $27.1 billion in 2024, reflecting strong growth in this area.
   • Gross and pre-tax income improved in 2023, with a gross profit of $8,023 million and a pre-tax income of $5.80 billion. In 2024, the company reported an operating pre-tax income of $11.2 billion, indicating a stronger profitability.

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