Installed Building Products Inc (IBP)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,981,300 | 1,920,960 | 1,835,940 | 1,779,560 | 1,778,900 | 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 | 1,099,480 | 1,063,680 | 916,391 | 877,709 |
| Total stockholders’ equity | US$ in thousands | 670,300 | 628,182 | 560,672 | 505,222 | 493,500 | 457,514 | 400,601 | 390,231 | 416,840 | 392,726 | 362,540 | 340,538 | 319,182 | 304,187 | 272,736 | 245,797 | 250,031 | 227,514 | 206,002 | 190,601 |
| Financial leverage ratio | 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 | 4.40 | 4.68 | 4.45 | 4.60 |
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 been fluctuating over the past eight quarters. The trend indicates an increasing level of financial leverage, starting at 3.60 in Q4 2022 and reaching 3.52 in Q1 2023, followed by further increases to 3.27 in Q2 2023, 3.06 in Q3 2023, and 2.96 in Q4 2023.
A financial leverage ratio above 1 indicates that the company is relying more on debt financing than equity financing. The decreasing trend in the financial leverage ratio does suggest improving solvency, as the company is relying less on debt to finance its operations.
Overall, the company's financial leverage ratio has shown some volatility but has generally trended downwards in recent quarters. It is important for investors and stakeholders to monitor this ratio to ensure that the company's capital structure remains sustainable and in line with its financial objectives.
Peer comparison
Dec 31, 2023