Installed Building Products Inc (IBP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.11 | 10.73 | 10.91 | 10.98 | 11.42 | 11.54 | 11.48 | 11.03 | 10.43 | 9.61 | 8.35 | 9.26 | 9.64 | 11.08 | 12.50 | 13.65 | 14.81 | 15.92 | 16.02 | 15.02 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.23 | 3.89 | 3.89 | 3.80 | 3.84 | 4.06 | 4.57 | 5.02 | 4.80 | 4.67 | 5.09 | 4.12 | 3.57 | 4.83 | 4.80 | 4.64 | 4.27 | 3.90 | 3.91 | 4.26 |
Activity ratios provide insights into how efficiently a company is managing its resources.
1. Inventory Turnover: Installed Building Products Inc's inventory turnover has been gradually decreasing over the years, from 15.02 in March 2020 to 10.11 in December 2024. This suggests that the company is taking longer to sell its inventory, which could indicate overstocking or declining demand.
2. Receivables Turnover: The data does not provide information on receivables turnover, which is crucial for understanding how quickly the company collects payments from its customers. The absence of this information limits our ability to evaluate the efficiency of the company's credit policies.
3. Payables Turnover: Similarly, there is no data available on payables turnover, which would help in assessing how effectively the company manages its trade credit with suppliers. Without this information, it is challenging to analyze the efficiency of the company's payment policies.
4. Working Capital Turnover: Installed Building Products Inc's working capital turnover has varied over the years, with fluctuations from 3.57 in December 2021 to 5.09 in June 2022. A higher turnover ratio indicates that the company is generating more revenue per unit of working capital invested, reflecting efficient utilization of resources.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into the company's operational efficiency, the lack of data on receivables and payables turnover limits a comprehensive assessment of Installed Building Products Inc's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.09 | 34.03 | 33.45 | 33.24 | 31.97 | 31.64 | 31.80 | 33.10 | 35.00 | 37.99 | 43.71 | 39.40 | 37.86 | 32.95 | 29.21 | 26.74 | 24.64 | 22.93 | 22.79 | 24.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Installed Building Products Inc's inventory management efficiency, as reflected in its Days of Inventory on Hand (DOH) ratio, has been gradually increasing over the years. The DOH ratio increased from 24.30 days as of March 31, 2020, to 36.09 days as of December 31, 2024. This trend indicates that the company is holding onto its inventory for a longer period.
However, the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided in the data, making it challenging to assess the company's accounts receivable and accounts payable management efficiency accurately. Without this information, a comprehensive analysis of the company's overall activity ratios is limited.
Overall, based on the available information, it is recommended that Installed Building Products Inc closely monitors and optimizes its inventory management practices to improve efficiency and maintain a balance between inventory levels and sales demand. Additionally, tracking and managing accounts receivable and accounts payable effectively are crucial for enhancing the company's overall working capital management and financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 12.95 | 13.28 | 13.64 | 13.70 | 13.41 | 12.28 | 11.98 | 11.20 | 11.30 | 10.76 | 16.10 | 15.89 | 15.38 | 15.36 | 14.74 |
| Total asset turnover | 1.43 | 1.40 | 1.41 | 1.40 | 1.40 | 1.43 | 1.50 | 1.54 | 1.50 | 1.43 | 1.36 | 1.28 | 1.19 | 1.41 | 1.40 | 1.37 | 1.39 | 1.38 | 1.40 | 1.44 |
Installed Building Products Inc's Fixed Asset Turnover ratio has shown a consistent upward trend over the years, indicating that the company has been able to generate more revenue per dollar of fixed assets invested. The ratio increased steadily from 14.74 in March 2020 to 13.70 in December 2022. However, it slightly decreased to 12.95 by September 30, 2023.
On the other hand, the Total Asset Turnover ratio has been relatively volatile, fluctuating between 1.19 and 1.54 during the same period. The ratio dropped to 1.19 by December 31, 2021, but then experienced an overall upward trend, reaching 1.43 by December 31, 2024.
In summary, while the company's Fixed Asset Turnover ratio has generally improved, suggesting efficient utilization of fixed assets, the Total Asset Turnover ratio has shown more variability in its performance over the years.