Installed Building Products Inc (IBP)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,059,900 | 2,072,500 | 2,025,200 | 2,003,200 | 1,981,300 | 1,920,960 | 1,835,940 | 1,779,560 | 1,778,930 | 1,763,850 | 1,702,090 | 1,652,750 | 1,653,200 | 1,327,130 | 1,273,620 | 1,233,620 | 1,187,680 | 1,165,440 | 1,131,050 | 1,087,060 |
| Total stockholders’ equity | US$ in thousands | 705,300 | 716,400 | 685,300 | 679,200 | 670,300 | 628,182 | 560,672 | 505,222 | 493,499 | 457,514 | 400,601 | 390,231 | 416,840 | 392,726 | 362,540 | 340,538 | 319,182 | 304,187 | 272,736 | 245,797 |
| Financial leverage ratio | 2.92 | 2.89 | 2.96 | 2.95 | 2.96 | 3.06 | 3.27 | 3.52 | 3.60 | 3.86 | 4.25 | 4.24 | 3.97 | 3.38 | 3.51 | 3.62 | 3.72 | 3.83 | 4.15 | 4.42 |
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 been decreasing steadily over the past few years, indicating an improvement in the company's financial health and risk management. The ratio stood at 4.42 as of March 31, 2020, and has shown a consistent downward trend, reaching 2.92 as of December 31, 2024.
This decline in the financial leverage ratio suggests that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio indicates that the company is funding a smaller portion of its assets through debt, which can lead to lower interest expenses and less financial risk.
Overall, the decreasing trend in Installed Building Products Inc's financial leverage ratio is a positive sign of improved financial stability and prudent financial management.
Peer comparison
Dec 31, 2024