Installed Building Products Inc (IBP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 670,300 | 493,500 | 416,840 | 319,182 | 250,031 |
| ROE | 36.36% | 45.27% | 28.49% | 30.47% | 27.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $243,700K ÷ $670,300K
= 36.36%
Installed Building Products Inc's return on equity (ROE) has fluctuated over the past five years, ranging from 27.26% in 2019 to 45.27% in 2022. The ROE was 36.36% at the end of 2023. This indicates that the company generates a satisfactory level of profit relative to its shareholders' equity. The high ROE values suggest that the company efficiently utilizes its equity to generate earnings. However, the declining trend in ROE from 2022 to 2023 may be a cause for concern and should be further investigated to understand the factors influencing the company's profitability and efficiency in utilizing equity.
Peer comparison
Dec 31, 2023