Installed Building Products Inc (IBP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.00 | 11.35 | 10.43 | 9.64 | 14.81 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.23 | 3.84 | 4.80 | 3.57 | 4.27 |
Installed Building Products Inc's activity ratios provide insights into how efficiently the company is managing its assets and operations.
1. Inventory Turnover: The company's inventory turnover has shown a declining trend over the years, from 14.81 in 2020 to 10.00 in 2024. This indicates that the company is selling its inventory less frequently in recent years, which may suggest either overstocking or a slowdown in the sales of its products.
2. Receivables Turnover: The data provided shows that there is no information available for receivables turnover for all the years specified. This may indicate that the company does not provide credit sales to customers or that the information is not publicly available.
3. Payables Turnover: Similarly, there is no data available for payables turnover for any of the years listed. This could be due to the company's payment practices or the availability of data.
4. Working Capital Turnover: The working capital turnover ratio fluctuates but generally shows a moderate efficiency in utilizing working capital over the years, ranging from 3.57 to 4.80. This indicates that the company is generating sales efficiently relative to its working capital investment.
In conclusion, while the inventory turnover has decreased and there is no information available for receivables and payables turnover, the working capital turnover indicates that Installed Building Products Inc has been relatively effective in generating sales from its working capital investment over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.49 | 32.16 | 35.00 | 37.86 | 24.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Installed Building Products Inc's days of inventory on hand (DOH) has shown an increase over the last five years, from 24.64 days as of December 31, 2020, to 36.49 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may tie up capital and lead to higher carrying costs.
However, there is no data provided for the days of sales outstanding (DSO) and the number of days of payables, which are key components used to calculate the cash conversion cycle. Without this data, it is challenging to assess the efficiency of Installed Building Products Inc's working capital management in terms of collecting receivables and managing payables.
Overall, with the information available, it appears that Installed Building Products Inc may need to focus on improving its inventory turnover and actively managing its working capital to enhance operational efficiency and cash flow management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 13.70 | 11.20 | 15.89 |
| Total asset turnover | 1.43 | 1.40 | 1.50 | 1.19 | 1.39 |
Installed Building Products Inc's fixed asset turnover has fluctuated over the years, with a significant decrease from 15.89 in 2020 to 11.20 in 2021, followed by an increase to 13.70 in 2022. However, there is no data available for 2023 and 2024.
The fixed asset turnover ratio indicates the efficiency of the company in generating sales from its investments in fixed assets. A higher ratio generally signifies better asset utilization. The decreasing trend from 2020 to 2021 could suggest potential issues in effectively utilizing fixed assets during that period.
In terms of total asset turnover, the company has shown a mixed performance, with a decrease from 1.39 in 2020 to 1.19 in 2021, followed by an increase to 1.50 in 2022. The ratio remained relatively stable at around 1.40 to 1.43 in 2023 and 2024.
The total asset turnover ratio measures how efficiently a company generates sales from its total assets. A higher ratio implies better asset utilization to generate revenue. The fluctuations in this ratio indicate variations in the company's ability to efficiently utilize its total assets to generate sales during the years under review.