Installed Building Products Inc (IBP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,941,300 | 2,778,600 | 2,669,840 | 1,968,650 | 1,653,220 |
| Total current assets | US$ in thousands | 1,054,900 | 1,070,000 | 884,411 | 859,316 | 623,943 |
| Total current liabilities | US$ in thousands | 359,000 | 346,400 | 328,061 | 307,569 | 236,475 |
| Working capital turnover | 4.23 | 3.84 | 4.80 | 3.57 | 4.27 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,941,300K ÷ ($1,054,900K – $359,000K)
= 4.23
Installed Building Products Inc's working capital turnover has shown some fluctuation over the past five years. The ratio decreased from 4.27 in December 31, 2020, to 3.57 in December 31, 2021, indicating that the company was generating $3.57 of revenue for every dollar of working capital during that period.
However, there was an improvement in the ratio in the following years. By December 31, 2022, the ratio had increased to 4.80, suggesting that the company was able to generate more revenue per dollar of working capital invested.
Subsequently, the ratio decreased to 3.84 by December 31, 2023, before rising again to 4.23 by December 31, 2024. This indicates that although there have been fluctuations, overall, Installed Building Products Inc has been relatively efficient in utilizing its working capital to generate revenue over the years analyzed.
It is important for the company to continue monitoring and managing its working capital effectively to ensure optimal performance and sustainable growth in the future.
Peer comparison
Dec 31, 2024