Installed Building Products Inc (IBP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 383,300 | 370,100 | 341,081 | 185,117 | 161,468 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 705,300 | 670,300 | 493,499 | 416,840 | 319,182 |
| Return on total capital | 54.35% | 55.21% | 69.11% | 44.41% | 50.59% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $383,300K ÷ ($—K + $705,300K)
= 54.35%
Installed Building Products Inc has shown a consistent and strong performance in terms of Return on Total Capital over the past five years. The ratio has fluctuated within a range, starting at 50.59% in 2020, dropping slightly to 44.41% in 2021, then significantly increasing to 69.11% in 2022. Subsequently, the ratio decreased to 55.21% in 2023 and remained strong at 54.35% in 2024.
The company's ability to generate a Return on Total Capital above 50% indicates efficient utilization of both debt and equity to generate profits. The high ratios indicate that the company is effectively deploying its capital to generate returns for its investors.
Overall, the trend in Return on Total Capital shows that Installed Building Products Inc has been successful in efficiently utilizing its capital resources to generate profits over the past five years, although some fluctuations were observed.
Peer comparison
Dec 31, 2024