Installed Building Products Inc (IBP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,070,000 | 884,400 | 859,316 | 623,943 | 581,949 |
| Total current liabilities | US$ in thousands | 346,400 | 328,100 | 307,569 | 236,475 | 214,149 |
| Current ratio | 3.09 | 2.70 | 2.79 | 2.64 | 2.72 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,070,000K ÷ $346,400K
= 3.09
Installed Building Products Inc's current ratio has shown a generally positive trend over the past five years, increasing from 2.72 in 2019 to 3.09 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has improved over the years. The company's current ratio has remained consistently above 2.5, indicating a strong liquidity position and ability to cover its current liabilities comfortably. The increasing trend in the current ratio suggests efficient management of both current assets and liabilities, enhancing the company's financial stability and ability to weather economic uncertainties. Overall, the current ratio analysis reflects positively on Installed Building Products Inc's financial health and operational efficiency in managing its short-term liquidity.
Peer comparison
Dec 31, 2023