Other

Weighted-Average Discount Rate

International Business Machines Weighted-Average Discount Rate decreased by 3.6% to $0.05 in Q4 2025 compared to the prior quarter. Over 3 years (FY 2022 to FY 2025), Weighted-Average Discount Rate shows an upward trend with a 10.8% CAGR.

Analysis

StatementBalance Sheet Statement
SectionOther
CategoryOther
SignalContext dependent
VolatilityModerate
First reportedQ4 2016
Last reportedQ4 2025

How to read this metric

Changes reflect shifts in the company's cost of debt or the interest rate environment, impacting the reported size of lease liabilities.

Detailed definition

This is the weighted-average interest rate used to discount future lease payments to their present value on the balance...

Peer comparison

Varies based on the company's credit rating and the prevailing interest rate environment at the time leases were signed.

Metric ID: weighted_average_discount_rate

Historical Data

4 periods
 Q4 '22Q4 '23Q4 '24Q4 '25
Value000.10
QoQ Change—+29.4%+8.9%-3.6%
YoY Change—+29.4%+8.9%-3.6%
Range0 – 0.1
Avg YoY Growth+11.6%
Median YoY Growth+8.9%

Frequently Asked Questions

What is International Business Machines's weighted-average discount rate?
International Business Machines (IBM) reported weighted-average discount rate of $0.05 in Q4 2025.
What is the long-term trend for International Business Machines's weighted-average discount rate?
Over 3 years (2022 to 2025), International Business Machines's weighted-average discount rate has grown at a 10.8% compound annual growth rate (CAGR), from $0.04 to $0.05.
What does weighted-average discount rate mean?
The average interest rate used to calculate the present value of the company's lease obligations.