Installed Building Products Inc (IBP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,981,300 | 1,778,900 | 1,653,200 | 1,187,680 | 1,099,480 |
| Total stockholders’ equity | US$ in thousands | 670,300 | 493,500 | 416,840 | 319,182 | 250,031 |
| Financial leverage ratio | 2.96 | 3.60 | 3.97 | 3.72 | 4.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,981,300K ÷ $670,300K
= 2.96
The financial leverage ratio of Installed Building Products Inc has exhibited a fluctuating trend over the past five years. The ratio decreased from 4.40 in 2019 to 3.72 in 2020, suggesting a reduction in the company's reliance on debt to finance its operations. However, the ratio then increased to 3.97 in 2021 and further to 3.60 in 2022, indicating a slight uptick in leverage. In 2023, the ratio decreased to 2.96, indicating a significant decrease in leverage compared to the previous year.
Overall, the company's financial leverage ratio demonstrates variability in its capital structure and debt financing practices over the years, with a notable reduction in leverage in 2023. It is essential for management to monitor and manage the company's leverage levels prudently to ensure financial stability and optimal capital structure going forward.
Peer comparison
Dec 31, 2023