Installed Building Products Inc (IBP)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,941,300 | 2,911,800 | 2,857,665 | 2,812,165 | 2,778,574 | 2,744,363 | 2,757,012 | 2,741,661 | 2,669,844 | 2,517,078 | 2,307,727 | 2,119,076 | 1,968,650 | 1,876,396 | 1,787,119 | 1,692,960 | 1,653,225 | 1,612,987 | 1,588,950 | 1,566,825 |
| Total current assets | US$ in thousands | 1,054,900 | 1,124,800 | 1,087,400 | 1,079,200 | 1,070,000 | 999,819 | 918,102 | 862,595 | 884,411 | 898,021 | 816,718 | 842,228 | 859,316 | 672,921 | 636,005 | 610,165 | 623,943 | 635,456 | 619,948 | 569,736 |
| Total current liabilities | US$ in thousands | 359,000 | 376,700 | 352,600 | 339,700 | 346,400 | 324,676 | 314,534 | 316,338 | 328,061 | 358,562 | 362,890 | 327,528 | 307,569 | 284,791 | 264,015 | 245,302 | 236,475 | 222,241 | 214,049 | 201,565 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the past few years. The ratio peaked at 5.09 on June 30, 2022, indicating that the company generated $5.09 in revenue for every dollar of working capital invested during that period. This suggests efficient utilization of its working capital to generate sales.
However, the ratio decreased in the following quarters but generally remained above 4, indicating consistent performance in efficiently converting working capital into revenue. The lowest ratio observed was 3.57 on December 31, 2021.
The company should monitor its working capital turnover to ensure optimal utilization of its resources and maintain consistent operational efficiency. Additionally, further analysis and comparison with industry benchmarks could provide valuable insights into the company's financial performance.
Peer comparison
Dec 31, 2024