Installed Building Products Inc (IBP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,424,700 | 2,351,960 | 1,794,650 | 1,510,860 | 1,408,720 |
| Inventory | US$ in thousands | 162,800 | 176,600 | 143,039 | 77,179 | 74,606 |
| Inventory turnover | 14.89 | 13.32 | 12.55 | 19.58 | 18.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,424,700K ÷ $162,800K
= 14.89
Installed Building Products Inc's inventory turnover has fluctuated over the past five years, ranging from 9.64 to 14.81 times. The inventory turnover for 2023 was 11.35, indicating that the company sold and replaced its inventory approximately 11.35 times during the year.
A higher inventory turnover ratio generally suggests that a company is efficiently managing its inventory by quickly selling through its stock. However, compared to previous years, the inventory turnover for 2023 is slightly lower than the ratios in 2020 and 2019, indicating a potential slowdown in inventory management efficiency.
It is essential for a company like Installed Building Products Inc, which operates in the construction industry, to carefully monitor its inventory turnover to optimize cash flow and minimize holding costs. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023