Topbuild Corp (BLD)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 12.24 12.40 11.46 10.42 9.89 9.44 8.92 8.91 8.80 13.63 14.75 15.19 15.04 16.73 16.22 15.77 16.01 15.31 14.13 12.42
Receivables turnover 6.41 5.86 5.92 6.04 5.92 5.83 5.57 5.27 5.15 6.02 6.02 5.99 6.30 6.03 6.19 6.09 6.05 5.66 5.73 5.84
Payables turnover 9.51 9.72 9.42 9.75 8.91 8.27 7.57 7.33 6.72 7.19 7.39 7.53 7.31 7.65 8.15 7.88 7.75 7.48 7.35 7.09
Working capital turnover 4.01 4.52 4.90 5.85 6.52 7.20 7.80 7.71 7.58 6.44 7.24 6.21 6.12 5.97 7.16 8.45 8.56 8.38 8.77 9.90

TopBuild Corp's activity ratios provide insights into how efficiently the company manages its operations related to inventory, receivables, payables, and working capital over the past eight quarters.

1. Inventory Turnover:
- The inventory turnover ratio has been relatively stable over the past quarters, ranging between 8.03 and 10.04.
- This indicates that TopBuild Corp is efficiently managing its inventory levels, turning over its inventory multiple times during the year. A higher turnover is generally more favorable as it implies faster sales or lower carrying costs.

2. Receivables Turnover:
- TopBuild Corp's receivables turnover has fluctuated but generally remained within a narrow range of 5.32 to 6.50.
- This indicates that the company is collecting its accounts receivable in a timely manner, with a higher turnover implying faster collection of receivables.

3. Payables Turnover:
- The payables turnover ratio has shown a consistent trend, ranging between 5.92 and 7.94.
- The company is effectively managing its payables, with a higher turnover indicating that TopBuild Corp is paying its suppliers relatively quickly.

4. Working Capital Turnover:
- The working capital turnover has shown a declining trend over the quarters, decreasing from 7.27 to 4.07.
- A lower turnover may suggest a decrease in sales relative to the investment in working capital, which could indicate inefficiencies in utilizing working capital.

Overall, the analysis of TopBuild Corp's activity ratios suggests that the company is efficiently managing its inventory, receivables, and payables. However, the declining trend in working capital turnover warrants further investigation to understand the impact on the company's overall operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 29.82 29.44 31.86 35.04 36.91 38.67 40.91 40.97 41.48 26.77 24.75 24.03 24.28 21.82 22.50 23.15 22.79 23.84 25.83 29.39
Days of sales outstanding (DSO) days 56.95 62.33 61.64 60.38 61.63 62.57 65.50 69.20 70.84 60.61 60.58 60.96 57.92 60.50 58.99 59.91 60.31 64.51 63.75 62.54
Number of days of payables days 38.39 37.57 38.77 37.43 40.98 44.13 48.22 49.78 54.31 50.75 49.42 48.47 49.90 47.72 44.78 46.32 47.08 48.78 49.66 51.46

Days of inventory on hand (DOH) measures how quickly a company sells its inventory. A lower DOH indicates that the company is efficiently managing its inventory. TopBuild Corp's DOH has been decreasing over the last two quarters, which is a positive trend as it indicates faster inventory turnover.

Days of sales outstanding (DSO) measures how long it takes for a company to collect its accounts receivable. A lower DSO is favorable as it shows efficient collection practices. In the case of TopBuild Corp, the DSO has been fluctuating slightly, but overall showing a stable trend over the past quarters.

Number of days of payables indicates how long it takes for a company to pay its suppliers. A higher number of days implies that the company is taking longer to pay its bills, which can be beneficial as it allows for better cash flow management. TopBuild Corp's days of payables have been decreasing over the last two quarters, indicating that the company is paying its suppliers more quickly.

Overall, TopBuild Corp's activity ratios show a positive trend with improving inventory turnover and efficient management of accounts receivable and payables.

Long-term

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
Fixed asset turnover 19.78 19.27 19.63 19.38 20.06 19.14 17.80 16.21 14.67 15.29 14.81 14.82 14.96 15.30 14.85 14.17 14.57 14.68 14.74 14.73
Total asset turnover 0.99 1.02 1.05 1.07 1.07 1.06 0.98 0.89 0.81 1.00 0.99 0.96 0.96 0.96 0.98 1.00 1.00 0.98 0.99 0.98

TopBuild Corp's fixed asset turnover has been consistently high, ranging from 15.75 to 19.90 over the past eight quarters. This indicates that the company is generating significant sales revenue relative to its investment in fixed assets. It suggests that TopBuild is effectively utilizing its fixed assets to generate sales, which is a positive sign of operational efficiency.

On the other hand, the total asset turnover ratio has fluctuated between 0.90 and 1.09 over the same period. While the ratio has shown some variability, it has generally remained within a reasonable range. A total asset turnover ratio of around 1.0 indicates that TopBuild is generating revenue in line with its total assets.

Overall, both fixed asset turnover and total asset turnover ratios suggest that TopBuild Corp is efficiently utilizing its assets to generate revenue. The high fixed asset turnover indicates effective use of fixed assets, while the stable total asset turnover implies that the company is efficiently generating revenue relative to its total asset base.