Installed Building Products Inc (IBP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.81% | 33.50% | 31.01% | 29.95% | 30.85% |
| Operating profit margin | 13.00% | 13.28% | 12.94% | 9.54% | 9.79% |
| Pretax margin | 11.78% | 11.99% | 11.36% | 7.90% | 7.93% |
| Net profit margin | 8.72% | 8.77% | 8.37% | 6.03% | 5.88% |
Installed Building Products Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has gradually increased from 30.85% in 2020 to 33.81% in 2024, indicating the company's ability to control its production costs and generate higher revenues on its sales.
Moreover, the operating profit margin has also shown steady growth, starting at 9.79% in 2020 and reaching 13.00% in 2024. This signals an improvement in operational efficiency and cost management, resulting in higher profitability from core business activities.
Similarly, the pretax margin has increased from 7.93% in 2020 to 11.78% in 2024, reflecting the company's ability to effectively manage its expenses and boost earnings before taxes.
Lastly, the net profit margin has shown a positive trend, climbing from 5.88% in 2020 to 8.72% in 2024. This indicates that Installed Building Products Inc has been successful in maximizing its bottom-line profitability after accounting for all expenses, including interest and taxes.
Overall, the improving profitability ratios demonstrate Installed Building Products Inc's strong financial performance and effective management of costs and operations over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.57% | 18.63% | 19.42% | 11.36% | 13.63% |
| Return on assets (ROA) | 12.46% | 12.30% | 12.56% | 7.19% | 8.19% |
| Return on total capital | 54.35% | 55.21% | 69.11% | 44.41% | 50.59% |
| Return on equity (ROE) | 36.38% | 36.36% | 45.27% | 28.50% | 30.47% |
Installed Building Products Inc's profitability ratios show a mixed performance over the past five years.
- The Operating Return on Assets (Operating ROA) decreased from 13.63% in December 2020 to 11.36% in December 2021 but has since shown an upward trend, reaching 18.57% by December 2024. This indicates the company's ability to generate operating profits from its assets has improved in recent years.
- The Return on Assets (ROA) also followed a similar pattern, starting at 8.19% in December 2020, dipping to 7.19% in December 2021, and then steadily increasing to 12.46% by December 2024. This metric evaluates the efficiency of utilizing assets to generate profits.
- Return on Total Capital peaked at 69.11% in December 2022, showing strong returns on the total capital employed in the business. However, it decreased to 54.35% by December 2024.
- Return on Equity (ROE) started at 30.47% in December 2020, decreased slightly in the following years, and stabilized around 36% from December 2023 onwards. ROE represents the return generated for shareholders on their equity investments.
In general, while there have been fluctuations in the profitability ratios, the company has shown improvements in operating efficiency and profitability, maintaining relatively strong returns for shareholders and capital providers over the years.