Installed Building Products Inc (IBP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 256,600 | 243,700 | 223,400 | 118,800 | 97,239 |
| Total assets | US$ in thousands | 2,059,900 | 1,981,300 | 1,778,930 | 1,653,200 | 1,187,680 |
| ROA | 12.46% | 12.30% | 12.56% | 7.19% | 8.19% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $256,600K ÷ $2,059,900K
= 12.46%
Installed Building Products Inc's return on assets (ROA) has exhibited some fluctuations over the past five years. The ROA was 8.19% as of December 31, 2020, decreased to 7.19% by December 31, 2021, and then saw a significant improvement to 12.56% by December 31, 2022. The positive trend continued with ROA at 12.30% by December 31, 2023, and slightly increased further to 12.46% by December 31, 2024.
This indicates that the company has been effectively utilizing its assets to generate profits. The ROA improvement from 2021 to 2024 suggests that Installed Building Products Inc has been more efficient in generating earnings from its asset base. Overall, the increasing trend in ROA reflects positively on the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2024