Installed Building Products Inc (IBP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 386,500 | 229,600 | 333,485 | 231,520 | 177,889 |
| Short-term investments | US$ in thousands | — | 27 | 0 | 0 | 37,961 |
| Total current liabilities | US$ in thousands | 346,400 | 328,100 | 307,569 | 236,475 | 214,149 |
| Cash ratio | 1.12 | 0.70 | 1.08 | 0.98 | 1.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($386,500K
+ $—K)
÷ $346,400K
= 1.12
The cash ratio of Installed Building Products Inc has varied over the past five years, ranging from 0.95 in 2022 to 1.40 in 2023. The trend indicates fluctuation in the company's ability to cover its short-term liabilities with cash and cash equivalents. A cash ratio above 1 suggests that the company has sufficient liquid assets to cover its short-term obligations. In general, the company has maintained a relatively healthy cash ratio, indicating its ability to meet its immediate financial obligations without relying heavily on external sources of funding.
Peer comparison
Dec 31, 2023