Return on equity
| ($ in millions) | |||
| At December 31: | 2008 | 2007 | |
|---|---|---|---|
|
* Calculated based upon an estimated tax rate principally based on Global Financing’s geographic mix of earnings as IBM’s provision for income taxes is determined on a consolidated basis. ** Average of the ending equity for Global Financing for the last five quarters. |
|||
| Numerator: | |||
| Global Financing after-tax income(a)* | $1,049 | $877 | |
| Denominator: | |||
| Average Global Financing equity(b)** | $3,572 | $3,365 | |
| Global Financing return on equity(a)/(b) | 29.4% | 26.1% | |
