Installed Building Products Inc (IBP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 382,500 | 369,100 | 345,411 | 187,880 | 161,867 |
| Total assets | US$ in thousands | 2,059,900 | 1,981,300 | 1,778,930 | 1,653,200 | 1,187,680 |
| Operating ROA | 18.57% | 18.63% | 19.42% | 11.36% | 13.63% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $382,500K ÷ $2,059,900K
= 18.57%
Installed Building Products Inc's operating return on assets (Operating ROA) has shown fluctuations over the period from December 31, 2020, to December 31, 2024. Starting at 13.63% in 2020, the ratio decreased to 11.36% in 2021 before experiencing a significant increase to 19.42% in 2022. In the following years, the operating ROA remained relatively stable, with values of 18.63% in 2023 and 18.57% in 2024.
The variation in operating ROA indicates changes in how effectively the company is generating operating profits relative to its assets. The increase in the ratio in 2022 suggests improved operational efficiency and profitability, while the subsequent stability at relatively high levels in 2023 and 2024 indicates continued success in leveraging assets to generate operating income.
Analyzing factors contributing to these changes, such as revenue growth, cost management, and asset utilization, can provide insights into the company's operational performance and strategies. As such, further examination of Installed Building Products Inc's financial and operational activities is warranted to understand the drivers behind these fluctuations in operating ROA.
Peer comparison
Dec 31, 2024