Installed Building Products Inc (IBP)

Liquidity ratios

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
Current ratio 3.09 3.08 2.92 2.73 2.70 2.50 2.25 2.57 2.79 2.36 2.41 2.49 2.64 2.86 2.90 2.83 2.72 2.69 2.16 2.24
Quick ratio 3.47 3.46 3.27 3.21 3.09 2.80 2.43 2.87 3.12 2.91 3.07 3.08 3.21 3.33 3.28 3.19 2.95 3.10 2.43 2.57
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

Installed Building Products Inc has demonstrated strong liquidity over the past eight quarters, as indicated by its current ratio consistently above 2.5, ranging from 2.70 to 3.09. This suggests the company has more than enough current assets to cover its current liabilities, providing a healthy buffer for short-term obligations.

The quick ratio, which excludes inventory from current assets, has also exhibited a stable trend, ranging from 2.16 to 2.62. This ratio confirms that the company can meet its short-term liabilities even if inventory is excluded from its assets, indicating efficient management of working capital.

Furthermore, the cash ratio has improved over the quarters, showing the ability to cover current liabilities using only cash and cash equivalents. The ratio has consistently increased from 0.66 to 1.40, indicating a stronger position in terms of immediate liquidity without relying on inventory or receivables.

Overall, the liquidity ratios of Installed Building Products Inc reflect a robust financial position with ample liquidity to meet short-term obligations, suggesting the company's ability to sustain its operations and support future growth.

Additional liquidity measure

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 conversion cycle days 109.15 108.23 107.38 112.84 113.41 118.18 121.83 119.54 120.01 125.48 124.10 116.06 112.61 103.91 97.80 96.91 95.59 98.24 91.47 91.48

Installed Building Products Inc's cash conversion cycle has shown variability over the past eight quarters, ranging from a low of 56.43 days in Q4 2023 to a high of 69.27 days in Q3 2022. Generally, a shorter cash conversion cycle is preferable as it indicates that the company is able to efficiently convert its investments in raw materials and production into cash receipts from customers.

It is worth noting that the cash conversion cycle decreased in Q4 2023 compared to the previous quarter, which suggests an improvement in managing cash flow and working capital. However, the company should aim to consistently reduce its cash conversion cycle over time to free up cash for strategic investments or to improve liquidity. Further analysis of the factors influencing the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable turnover, is recommended to identify opportunities for optimization.