Installed Building Products Inc (IBP)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 835,100 | 830,200 | 832,193 | 541,957 | 545,031 |
| Total stockholders’ equity | US$ in thousands | 670,300 | 493,500 | 416,840 | 319,182 | 250,031 |
| Debt-to-equity ratio | 1.25 | 1.68 | 2.00 | 1.70 | 2.18 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $835,100K ÷ $670,300K
= 1.25
Installed Building Products Inc's debt-to-equity ratio has shown a fluctuating trend over the past five years. The ratio decreased from 2.30 in 2019 to 1.31 in 2023, suggesting an improvement in the company's debt management practices. This decrease indicates that the company has reduced its reliance on debt financing relative to equity over this period.
In 2020, the ratio increased to 1.79 before peaking at 2.08 in 2021, indicating a temporary increase in the company's debt levels relative to equity. However, the ratio decreased again in 2022 to 1.76 before reaching its lowest point in the most recent year.
Overall, a debt-to-equity ratio of around 1.31 in 2023 implies that the company is using a moderate level of debt to finance its operations compared to equity. This could indicate a balanced capital structure and a reduced financial risk. However, it is essential for the company to continue monitoring and managing its debt levels effectively to maintain a healthy debt-to-equity ratio in the future.
Peer comparison
Dec 31, 2023