Installed Building Products Inc (IBP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,946,800 | 1,847,900 | 1,842,060 | 1,379,130 | 1,143,250 |
| Inventory | US$ in thousands | 194,600 | 162,800 | 176,629 | 143,039 | 77,179 |
| Inventory turnover | 10.00 | 11.35 | 10.43 | 9.64 | 14.81 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,946,800K ÷ $194,600K
= 10.00
Installed Building Products Inc's inventory turnover has shown some fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.
Starting at a high level of 14.81 in December 2020, the inventory turnover then decreased significantly to 9.64 by December 2021, indicating a slower rate of inventory turnover. However, the ratio improved slightly to 10.43 by December 2022, suggesting a better utilization of inventory during that year.
Subsequently, the inventory turnover continued to increase to 11.35 by December 2023, indicating that the company managed its inventory more efficiently. However, by December 2024, the inventory turnover ratio slightly decreased to 10.00, though it remained higher than the level in 2021.
Overall, the trend in Installed Building Products Inc's inventory turnover suggests some variability in the company's inventory management efficiency over the five-year period, with improvements seen in some years and slight declines in others. It is essential for the company to monitor its inventory turnover ratio closely to ensure optimal utilization of inventory and effective management of working capital.
Peer comparison
Dec 31, 2024