Installed Building Products Inc (IBP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 386,500 | 229,600 | 333,485 | 231,520 | 177,889 |
| Short-term investments | US$ in thousands | — | 27 | 0 | 0 | 37,961 |
| Receivables | US$ in thousands | 816,600 | 785,791 | 624,980 | 526,847 | 416,522 |
| Total current liabilities | US$ in thousands | 346,400 | 328,100 | 307,569 | 236,475 | 214,149 |
| Quick ratio | 3.47 | 3.09 | 3.12 | 3.21 | 2.95 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($386,500K
+ $—K
+ $816,600K)
÷ $346,400K
= 3.47
The quick ratio of Installed Building Products Inc has shown some fluctuations over the past five years. The company's quick ratio was 2.62 as of December 31, 2023, which indicates that the company had $2.62 in liquid assets available to cover each dollar of its current liabilities. This represents a healthy liquidity position for the company as it has significantly more liquid assets than current liabilities.
The trend in the quick ratio over the past five years shows some variability but generally indicates that Installed Building Products Inc has maintained a solid liquidity position. The quick ratio was relatively high in 2019 at 2.37, dipped slightly in 2020 to 2.31, and then increased in 2021 to 2.33 before experiencing a more significant increase to 2.16 in 2022, and a subsequent recovery to 2.62 in 2023.
Overall, the quick ratio suggests that Installed Building Products Inc has been able to meet its short-term obligations comfortably over the years, with a current level indicating strong liquidity and the ability to cover its current liabilities with a significant margin of safety. However, it's important to analyze other financial metrics and consider the company's specific circumstances to gain a more comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023