Dividend Yield: 1.64% IBM's gross profit margin for the second quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. IBM has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow. During the same period, stockholders' equity ("net worth") has decreased by 11.48% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. The current P/E ratio indicates a significant discount compared to an average of 25.56 for the IT Services industry and a value on par with the S&P 500 average of 16.49. For additional comparison, its price-to-book ratio of 11.52 indicates a significant premium versus the S&P 500 average of 2.28 and a significant premium versus the industry average of 7.96. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, IBM seems to be trading at a discount to investment alternatives within the industry.