Installed Building Products Inc (IBP)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,746,664 | 2,702,728 | 2,720,605 | 2,704,681 | 2,627,372 | 2,480,286 | 2,267,738 | 2,081,968 | 1,934,728 | 1,846,449 | 1,757,295 | 1,662,899 | 1,623,163 | 1,590,343 | 1,565,412 | 1,545,395 | 1,491,865 | 1,443,755 | 1,399,481 | 1,360,209 |
| Total current assets | US$ in thousands | 1,070,000 | 999,819 | 918,102 | 862,595 | 884,400 | 898,021 | 816,718 | 842,228 | 859,316 | 672,921 | 636,005 | 610,165 | 623,943 | 635,456 | 619,948 | 569,736 | 581,949 | 578,497 | 436,676 | 408,296 |
| Total current liabilities | US$ in thousands | 346,400 | 324,676 | 314,534 | 316,338 | 328,100 | 358,562 | 362,890 | 327,528 | 307,569 | 284,791 | 264,015 | 245,302 | 236,475 | 222,241 | 214,049 | 201,565 | 214,149 | 215,449 | 201,977 | 182,417 |
| Working capital turnover | 3.80 | 4.00 | 4.51 | 4.95 | 4.72 | 4.60 | 5.00 | 4.05 | 3.51 | 4.76 | 4.72 | 4.56 | 4.19 | 3.85 | 3.86 | 4.20 | 4.06 | 3.98 | 5.96 | 6.02 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,746,664K ÷ ($1,070,000K – $346,400K)
= 3.80
Installed Building Products Inc's working capital turnover has shown a fluctuating trend over the past eight quarters, ranging from 3.84 to 5.09. The working capital turnover represents the efficiency with which the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively utilizing its current assets to support its operations and generate sales.
In this case, the company's working capital turnover has generally been above 4. This suggests that Installed Building Products Inc is effectively managing its working capital to support its sales activities. The peak in Q2 2023 with a turnover ratio of 5.09 indicates a particularly efficient use of working capital during that period.
However, it's important to note the fluctuations in the working capital turnover ratio across quarters. These fluctuations may indicate variations in the company's operating efficiency and effectiveness in managing its working capital. It would be beneficial for the company to analyze the reasons behind these fluctuations to ensure consistent and optimal use of its working capital in the future.
Peer comparison
Dec 31, 2023