Installed Building ProductsIBP +2.82%96 Current Ratio is 3.35 as of Mar. 2026, which is 24% above its 10-year median of 2.70. GuruFocus rates IBP with a GF Score™ of 96/100 and a GF Value™ of $225.55 (Fairly Valued). The stock has 3 warning signs investors should review. Among 95 Homebuilding & Construction companies, Installed Building Products ranks better than 63.16% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Installed Building Products's current ratio for the quarter that ended in Mar. 2026 was 3.35.
Installed Building Products has a current ratio of 3.35. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Installed Building Products's Current Ratio or its related term are showing as below:
IBP'
s Current Ratio Range Over the Past 10 Years
Min: 1.48 Med: 2.7 Max: 3.35
Current: 3.35
During the past 13 years, Installed Building Products's highest Current Ratio was 3.35. The lowest was 1.48. And the median was 2.70.
IBP's Current Ratio is ranked better than 63.16% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 2.46
vs IBP: 3.35
Installed Building Products (NYSE:IBP) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Installed Building Products Current Ratio Related Terms
Installed Building Products Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Installed Building Products's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Installed Building Products Current Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Installed Building Products's Current Ratio distribution charts can be found below:
* The bar in red indicates where Installed Building Products's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Installed Building Products (IBP) has a Current Ratio of 3.35 as of Mar. 2026. This is 24% above median its historical median of 2.70. Over the past decade, Installed Building Products' Current Ratio has ranged from 1.48 to 3.35. According to the industry distribution chart, Installed Building Products ranks #35 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 36.8%.
Is Installed Building Products' Current Ratio too high?
Installed Building Products' current Current Ratio of 3.35 is 24% above median its 10-year median of 2.70. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 3.35. The Homebuilding & Construction industry median Current Ratio is 2.46. Installed Building Products' value of 3.35 is 36.2% above this industry median. Based on the distribution chart, Installed Building Products ranks #35 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Installed Building Products has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Installed Building Products' Current Ratio compare to TMHC and MTH?
According to the Homebuilding & Construction industry distribution chart, Installed Building Products ranks #35 out of 95 companies for Current Ratio. This puts Installed Building Products in the upper half of its industry. The industry median Current Ratio is 2.46. Installed Building Products' value of 3.35 is 36.2% above this benchmark. Historically, Installed Building Products' own Current Ratio has ranged from 1.48 to 3.35 over the past decade. While the company's 10-year median is 2.70 vs. the industry median of 2.46, Installed Building Products has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Homebuilding & Construction company?
The median Current Ratio among Homebuilding & Construction companies is 2.46, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Installed Building Products's current Current Ratio of 3.35 is 36.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median Current Ratio is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Installed Building Products's current Current Ratio is 3.35, which is 24% above median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Installed Building Products stock overvalued right now?
Based on GuruFocus' analysis, Installed Building Products (IBP) is currently considered Fairly Valued. The stock's GF Value™ is $225.55, compared to a current price of $229.60 — trading 1.8% above its estimated fair value. The current Current Ratio is 3.35, which is 24% above median its 10-year median of 2.70 and 36.2% above the Homebuilding & Construction industry median of 2.46. Installed Building Products' overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Installed Building Products (IBP), the current Current Ratio is 3.35 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Installed Building Products (IBP) Overvalued in 2026?
Based on GuruFocus' analysis, Installed Building Products stock appears to be overvalued.
The current stock price of $229.60 is trading 1.8% above its estimated GF Value™ of $225.55.
GuruFocus considers Installed Building Products to be Fairly Valued.
Key valuation signals for IBP:
Current Ratio: 3.35 (24% above median its 10-year median of 2.70)
GF Value™: $225.55 vs. price of $229.60 (1.8% above fair value)
Industry Position: 36.2% above the Homebuilding & Construction median (#35 of 95)
No single metric tells the full story. See the IBP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is derived from Installation segment.
96GF Score
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