Installed Building Products Inc (IBP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 243,700 | 223,400 | 118,763 | 97,239 | 68,159 |
| Total assets | US$ in thousands | 1,981,300 | 1,778,900 | 1,653,200 | 1,187,680 | 1,099,480 |
| ROA | 12.30% | 12.56% | 7.18% | 8.19% | 6.20% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $243,700K ÷ $1,981,300K
= 12.30%
Installed Building Products Inc's return on assets (ROA) has consistently shown positive performance over the past five years. The ROA gradually increased from 6.20% in 2019 to 12.56% in 2022 before slightly declining to 12.30% in 2023. This indicates that the company has been effectively utilizing its assets to generate profits. The peak ROA in 2022 suggests a significant improvement in asset efficiency, possibly driven by better management of resources or increased revenue generation relative to the size of its asset base.
The average ROA over the five-year period is approximately 9.50%, reflecting a generally strong performance in generating earnings from its assets. This metric can be used by investors and analysts to evaluate the company's ability to generate profits relative to its asset base and for comparing its performance against industry peers. Moving forward, monitoring ROA trends will be crucial to assess Installed Building Products Inc's operational and financial efficiency.
Peer comparison
Dec 31, 2023