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Which business segment contributes the most (least) pretax income for IBM? Compute the percentage of segmete...

Which business segment contributes the most (least) pretax income for IBM? Compute the percentage of segmete pre-tax income to total segments pre-tax income for theses two segments.

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Answer #1

This information is for the year ended 31 December 2018.

IBM is having 5 business segments namely Cognitive solutions, Global business services, Technology services and cloud platform, systems and global financing.

The pre tax income from cognitive solutions is highest at $7154 and pre tax income from system segment is lowest at $904.

As total pre tax income of IBM is $ 14881.

Percentage of cognitive solutions is $ 7154 / $ 14881 = 48.07% and percentage of system segment is $ 904/ $ 14881 = 6.07%

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