Installed Building Products Inc (IBP)
Receivables 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 |
| Receivables | US$ in thousands | 816,600 | 785,791 | 624,980 | 526,847 | 416,522 |
| Receivables turnover | 3.36 | 3.35 | 3.10 | 3.08 | 3.55 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,742,600K ÷ $816,600K
= 3.36
Installed Building Products Inc's receivables turnover has shown some fluctuations over the past five years. The company's ability to collect receivables improved in 2022 with a turnover of 6.72, but slightly decreased to 6.56 in 2023. Overall, the company has maintained a relatively consistent level of receivables turnover around 6.2 to 6.7 times annually, indicating that the company efficiently collects its accounts receivable. An increase in the receivables turnover ratio suggests a shorter collection period, which is generally viewed positively as it signifies faster conversion of receivables into cash. However, it would be beneficial to further investigate the factors influencing these fluctuations to ensure continued efficiency in managing accounts receivable.
Peer comparison
Dec 31, 2023