Installed Building Products Inc (IBP)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.09 + — – —
= 36.09
Installed Building Products Inc's cash conversion cycle has exhibited some fluctuations over the past few years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
Looking at the data provided, we can see that the cash conversion cycle for Installed Building Products Inc ranged from a low of 22.79 days in June 2020 to a high of 43.71 days in June 2022, indicating a significant increase in the time it takes for the company to convert its investments into cash during that period.
It is important to note that a shorter cash conversion cycle is generally considered more favorable, as it indicates efficient management of working capital and quicker cash flows. On the other hand, a longer cash conversion cycle may imply inefficiencies in inventory management, collection of receivables, or payment of liabilities.
Overall, consistent monitoring and management of the cash conversion cycle is essential for Installed Building Products Inc to ensure optimal working capital management and efficient cash flow operations in the future.
Peer comparison
Dec 31, 2024