Installed Building Products Inc (IBP)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 370,100 | 374,712 | 365,925 | 365,085 | 344,881 | 290,938 | 252,111 | 214,127 | 188,317 | 184,418 | 174,933 | 163,453 | 161,468 | 151,485 | 143,351 | 131,875 | 120,709 | 112,518 | 101,441 | 97,869 |
| Long-term debt | US$ in thousands | 835,100 | 833,458 | 831,282 | 830,225 | 830,200 | 827,906 | 828,632 | 829,638 | 832,193 | 542,517 | 543,592 | 545,138 | 541,957 | 544,276 | 544,976 | 545,552 | 545,031 | 542,510 | 431,988 | 430,460 |
| Total stockholders’ equity | US$ in thousands | 670,300 | 628,182 | 560,672 | 505,222 | 493,500 | 457,514 | 400,601 | 390,231 | 416,840 | 392,726 | 362,540 | 340,538 | 319,182 | 304,187 | 272,736 | 245,797 | 250,031 | 227,514 | 206,002 | 190,601 |
| Return on total capital | 24.58% | 25.64% | 26.29% | 27.34% | 26.05% | 22.63% | 20.51% | 17.55% | 15.08% | 19.72% | 19.31% | 18.46% | 18.75% | 17.85% | 17.53% | 16.66% | 15.18% | 14.61% | 15.90% | 15.76% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $370,100K ÷ ($835,100K + $670,300K)
= 24.58%
Installed Building Products Inc's return on total capital has shown a positive trend over the past eight quarters, increasing from 17.02% in Q1 2022 to 25.38% in Q1 2023. The company's ability to generate returns relative to the total capital employed has been consistently improving. This indicates that the company has been effectively utilizing its capital to generate profits and create shareholder value. The upward trend in return on total capital suggests that Installed Building Products Inc has been efficiently managing its assets and liabilities to maximize profitability. Overall, the increasing trend in return on total capital reflects positively on the company's financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2023