Installed Building Products Inc (IBP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 327,600 | 386,500 | 229,627 | 333,485 | 231,520 |
| Short-term investments | US$ in thousands | — | — | 0 | 94,865 | 0 |
| Total current liabilities | US$ in thousands | 359,000 | 346,400 | 328,061 | 307,569 | 236,475 |
| Cash ratio | 0.91 | 1.12 | 0.70 | 1.39 | 0.98 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($327,600K
+ $—K)
÷ $359,000K
= 0.91
The cash ratio of Installed Building Products Inc has shown variability over the years. As of December 31, 2020, the cash ratio was 0.98, indicating that the company had nearly enough cash to cover its current liabilities. Subsequently, the ratio improved to 1.39 by December 31, 2021, suggesting a stronger liquidity position.
However, by December 31, 2022, the cash ratio decreased to 0.70, signaling a potential liquidity challenge as the company may have had insufficient cash to cover its short-term obligations. There was a recovery by December 31, 2023, with the cash ratio increasing to 1.12, which improved the company's ability to meet its immediate financial obligations.
By December 31, 2024, the cash ratio declined to 0.91, indicating a slight decrease in liquidity compared to the previous year. Overall, the fluctuation in the cash ratio of Installed Building Products Inc reflects changes in its cash position relative to its current liabilities, highlighting the importance of monitoring liquidity to ensure the company's financial health.
Peer comparison
Dec 31, 2024