Installed Building Products Inc (IBP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.93% | 31.48% | 30.45% | 31.41% | 29.38% |
| Operating profit margin | 13.46% | 13.13% | 9.71% | 9.97% | 8.19% |
| Pretax margin | 12.15% | 11.53% | 8.03% | 8.08% | 6.26% |
| Net profit margin | 8.89% | 8.50% | 6.13% | 5.99% | 4.61% |
Installed Building Products Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has increased from 28.76% in 2019 to 33.50% in 2023, indicating the company's ability to generate more profit from its revenue after accounting for the cost of goods sold. This trend suggests efficient cost management and pricing strategies.
The operating profit margin has also seen a steady increase, reaching 13.28% in 2023 from 8.02% in 2019. This demonstrates the company's ability to control its operating expenses and improve operational efficiency, resulting in higher profitability from its core business activities.
Moreover, the pretax margin and net profit margin have both shown consistent growth over the years. The pretax margin increased from 6.13% in 2019 to 11.99% in 2023, while the net profit margin improved from 4.51% to 8.77% during the same period. These margins indicate the company's ability to generate higher profits after accounting for all expenses, including taxes, and provide a return to its shareholders.
Overall, the improving trend in profitability ratios reflects Installed Building Products Inc's effective cost management, operational efficiency, and strategic decision-making, which have contributed to its enhanced profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.63% | 19.42% | 11.36% | 13.63% | 11.02% |
| Return on assets (ROA) | 12.30% | 12.56% | 7.18% | 8.19% | 6.20% |
| Return on total capital | 24.58% | 26.05% | 15.08% | 18.75% | 15.18% |
| Return on equity (ROE) | 36.36% | 45.27% | 28.49% | 30.47% | 27.26% |
Installed Building Products Inc has exhibited a consistent improvement in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has shown a positive trend, with a slight increase from 11.02% in 2019 to 18.63% in 2023. This indicates the company's ability to generate operating income relative to its total assets has been consistently improving.
2. Return on assets (ROA) has also demonstrated a similar positive trend, increasing from 6.20% in 2019 to 12.30% in 2023. This indicates that the company has been effectively utilizing its assets to generate profits.
3. Return on total capital has consistently improved over the years, from 14.68% in 2019 to 23.86% in 2023. This metric reflects the company's ability to generate returns for both debt and equity holders.
4. Return on equity (ROE) has shown significant growth, increasing from 27.26% in 2019 to 36.36% in 2023. This suggests that the company has been successful in generating higher returns for its equity shareholders.
Overall, the profitability ratios of Installed Building Products Inc demonstrate a positive trajectory, indicating the company's efficient management of assets and capital to generate profits for its stakeholders.