Installed Building Products Inc (IBP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,059,900 | 1,981,300 | 1,778,930 | 1,653,200 | 1,187,680 |
| Total stockholders’ equity | US$ in thousands | 705,300 | 670,300 | 493,499 | 416,840 | 319,182 |
| Financial leverage ratio | 2.92 | 2.96 | 3.60 | 3.97 | 3.72 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,059,900K ÷ $705,300K
= 2.92
Installed Building Products Inc's financial leverage ratio has fluctuated over the past five years. The ratio was 3.72 as of December 31, 2020, indicating that the company had significant financial leverage. However, by December 31, 2021, the ratio increased to 3.97, reflecting even higher leverage.
Subsequently, there was a decrease in the financial leverage ratio to 3.60 by December 31, 2022, suggesting a slight improvement in the company's leverage position. The ratio further decreased to 2.96 by December 31, 2023, indicating a notable reduction in financial leverage.
As of December 31, 2024, the financial leverage ratio dropped to 2.92, continuing the trend of decreasing leverage over the years. The declining trend in the financial leverage ratio may indicate that Installed Building Products Inc has been working to reduce its reliance on debt financing, which could potentially make the company less vulnerable to financial risks associated with high leverage.
Peer comparison
Dec 31, 2024