Installed Building Products Inc (IBP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 386,500 | 339,759 | 255,226 | 218,690 | 229,600 | 203,402 | 69,940 | 217,434 | 333,485 | 191,435 | 203,911 | 207,343 | 231,520 | 267,471 | 252,488 | 187,187 | 177,889 | 234,950 | 95,747 | 88,146 |
| Short-term investments | US$ in thousands | — | — | — | — | 27 | 24,996 | 94,865 | 49,980 | 0 | — | — | — | 0 | 1,220 | 16,688 | 26,487 | 37,961 | 4,980 | 9,923 | 10,026 |
| 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 |
| Cash ratio | 1.12 | 1.05 | 0.81 | 0.69 | 0.70 | 0.64 | 0.45 | 0.82 | 1.08 | 0.67 | 0.77 | 0.85 | 0.98 | 1.21 | 1.26 | 1.06 | 1.01 | 1.11 | 0.52 | 0.54 |
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 for Installed Building Products Inc has shown a general increasing trend over the past eight quarters, indicating an improvement in its ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q4 2023, the cash ratio reached 1.40, reflecting that the company had $1.40 in cash and cash equivalents for every dollar of current liabilities. This represents a significant increase from the ratio of 0.95 in Q4 2022.
The company's cash ratio fluctuated between 0.66 and 1.07 in the first three quarters of 2022 but experienced a notable increase to 1.03 in Q1 2022. Subsequently, the ratio continued to rise, reaching 1.27 in Q3 2023 before peaking at 1.40 in Q4 2023.
The consistent improvement in the cash ratio suggests that Installed Building Products Inc has been effectively managing its liquidity and strengthening its ability to meet its short-term obligations using its cash reserves. This trend may indicate a positive financial position and enhanced financial stability for the company.
Peer comparison
Dec 31, 2023