Installed Building Products Inc (IBP)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	333,100	303,307	155,475	131,177	92,605
Revenue	US$ in thousands	2,742,600	2,629,690	1,935,880	1,623,720	1,479,940
Pretax margin		12.15%	11.53%	8.03%	8.08%	6.26%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $333,100K ÷ $2,742,600K
= 12.15%

Installed Building Products Inc has demonstrated a consistent improvement in its pretax margin over the past five years, with the metric steadily increasing from 6.13% in 2019 to 11.99% in 2023. This upward trend indicates the company's ability to effectively manage costs and generate higher levels of profitability before accounting for taxes. The rise in pretax margin suggests improved operational efficiency and effectiveness in controlling expenses relative to revenue. Overall, the company's performance in this aspect reflects a positive trajectory in its financial health and management effectiveness.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

Installed Building Products Inc

IBP

12.15%

Fortune Brands Innovations Inc.