Installed Building Products Inc (IBP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 327,600 | 386,500 | 229,627 | 333,485 | 231,520 |
| Short-term investments | US$ in thousands | — | — | 0 | 94,865 | 0 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 359,000 | 346,400 | 328,061 | 307,569 | 236,475 |
| Quick ratio | 0.91 | 1.12 | 0.70 | 1.39 | 0.98 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($327,600K
+ $—K
+ $—K)
÷ $359,000K
= 0.91
The quick ratio of Installed Building Products Inc has demonstrated fluctuations over the years.
As of December 31, 2020, the quick ratio stood at 0.98, indicating that the company had almost enough liquid assets to cover its current liabilities.
By December 31, 2021, the quick ratio improved significantly to 1.39, reflecting a stronger liquidity position with more readily available assets to meet short-term obligations.
However, there was a notable decline in the quick ratio by December 31, 2022, dropping to 0.70. This could suggest a potential liquidity challenge as the company may not have sufficient liquid assets to cover its current liabilities.
The quick ratio recovered by December 31, 2023, rising to 1.12, indicating an improved ability to meet short-term obligations with available liquid assets.
By December 31, 2024, the quick ratio decreased slightly to 0.91, although it still remained above 1, implying that the company could cover its short-term liabilities with its quick assets, though not as comfortably as in the previous year.
Overall, while the quick ratio has shown variability over the years, it is important for Installed Building Products Inc to maintain a balance between liquidity and operational efficiency to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024