Installed Building Products Inc (IBP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.92 | 2.96 | 3.60 | 3.97 | 3.72 |
Installed Building Products Inc exhibits strong solvency ratios over the period from December 31, 2020, to December 31, 2024. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at 0.00, indicating that the company has no debt relative to its assets, capital, or equity during this period.
Furthermore, the financial leverage ratio has shown a declining trend, decreasing from 3.72 in 2020 to 2.92 in 2024. This suggests that Installed Building Products Inc has reduced its reliance on debt financing over the years, leading to a stronger financial position with lower leverage.
Overall, the solvency ratios of Installed Building Products Inc portray a robust financial position, with minimal debt levels and improving leverage ratios, indicating the company's ability to meet its financial obligations and operate efficiently without excessive debt burden.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.39 | 10.00 | 8.20 | 5.64 | 5.33 |
The interest coverage ratio for Installed Building Products Inc has shown a generally positive trend over the past five years, reflecting the company's ability to comfortably meet its interest obligations.
As of December 31, 2020, the interest coverage ratio stood at 5.33, indicating that the company was generating operating income more than five times its interest expense. This ratio improved slightly to 5.64 by December 31, 2021, showing a continued ability to cover its interest payments.
A more significant increase was observed in the interest coverage ratio for December 31, 2022, which rose to 8.20. This substantial improvement suggests a stronger financial position and better earnings capacity to service debt.
By December 31, 2023, the interest coverage ratio further increased to 10.00, demonstrating a significant enhancement in the company's ability to cover interest costs with operating income.
The most recent data available, as of December 31, 2024, shows a continued improvement in the interest coverage ratio to 10.39. This indicates a robust financial position, with the company generating over ten times its interest expenses in operating income.
Overall, the trend in Installed Building Products Inc's interest coverage ratio reflects a consistent strengthening of its financial health and ability to meet its interest obligations comfortably over the analyzed period.