Installed Building Products Inc (IBP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,742,600 | 2,629,690 | 1,935,880 | 1,623,720 | 1,479,940 |
| Property, plant and equipment | US$ in thousands | 128,100 | 109,846 | 100,667 | 104,022 | 106,410 |
| Fixed asset turnover | 21.41 | 23.94 | 19.23 | 15.61 | 13.91 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,742,600K ÷ $128,100K
= 21.41
Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. Installed Building Products Inc has demonstrated a consistent improvement in its fixed asset turnover ratio over the past five years, with values of 20.25 in 2023, 22.48 in 2022, 18.58 in 2021, 15.89 in 2020, and 14.21 in 2019.
The upward trend in the fixed asset turnover ratio indicates that the company has been able to increase its revenue generation relative to its investment in fixed assets. This suggests that Installed Building Products Inc has been effectively utilizing its property, plant, and equipment to drive sales and improve operational efficiency.
A higher fixed asset turnover ratio generally signifies better asset utilization and operational efficiency, which can result in improved profitability and returns for shareholders. The consistent increase in the fixed asset turnover ratio for Installed Building Products Inc reflects positively on the company's management of its fixed assets and suggests a strong operational performance.
Peer comparison
Dec 31, 2023