Installed Building Products Inc (IBP)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 930,700 | 827,800 | 589,519 | 509,974 | 434,820 |
| Revenue | US$ in thousands | 2,742,600 | 2,629,690 | 1,935,880 | 1,623,720 | 1,479,940 |
| Gross profit margin | 33.93% | 31.48% | 30.45% | 31.41% | 29.38% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $930,700K ÷ $2,742,600K
= 33.93%
Installed Building Products Inc has shown a consistent improvement in its gross profit margin over the past five years, reflecting its ability to effectively manage its cost of goods sold. The gross profit margin increased from 28.76% in 2019 to 33.50% in 2023, indicating a trend of operational efficiency and pricing power within the company. This upward trajectory suggests that Installed Building Products Inc has been able to increase profitability by either lowering production costs, increasing selling prices, or a combination of both. A higher gross profit margin typically indicates that the company is generating more profit per dollar of revenue, which can be a positive indicator of financial health. Overall, the improving gross profit margin for Installed Building Products Inc demonstrates its ability to effectively control costs and optimize pricing strategies to enhance profitability.
Peer comparison
Dec 31, 2023