IBM Is Awesome Where It Counts: Fool by Numbers

• We already knew what the sales and earnings would look like after the preannouncement earlier this week. While that was a tasty starter, the details are really quite delicious.
• Here's a scrumptious chain of events for you: Sales growth easily outpaced inflation, but net profits ballooned even faster. Combined with a generous share buyback program, earnings per share virtually exploded. Still, free cash flow nearly managed to match the EPS gains.
• The world outside U.S. borders generated 65% of IBM's revenue, but 75% of its operational profits. There's greater-than-10% revenue growth happening in places like Poland, Pakistan, Portugal, and Paraguay.

(Figures in millions, except per-share data)

Income Statement Highlights

Get back to basics with the income statement.

Margin Checkup

Margins are the earnings engine.

Balance Sheet Highlights

The balance sheet reflects the company's health. IBM chose to report some of their balances in a non-standard, lumped-together format.

Cash Flow Highlights

Free cash flow is a Fool's best friend. Many of the cash flow figures come from the earnings call, where management handed out nice, round numbers. Owner earnings were calculated from reported financial items.

Competitive Context

Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.