Should Investors Be Worried About IBM's Mountain of Debt?

Unlike other large technology companies that have spent the past few years piling up mountains of cash, International Business Machines (NYSE: IBM) has piled up a mountain of debt. IBM's total debt stood at $45.6 billion at the end of the third quarter, far higher than its cash balance of $11.5 billion. Five years ago, IBM's debt was just $33.7 billion.

IBM's share-buyback program is one reason for this rising debt load. From 2012 through 2016, IBM spent a whopping $47.6 billion on share buybacks. The cash flow covered most of this spending, but not all of it.

Should investors be worried about IBM's balance sheet? In short, no. Here's why.

Source: Fool.com