Topbuild Corp (BLD)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 11.41 | 11.73 | 11.59 | 11.90 | 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 |
| Receivables turnover | 7.07 | 6.36 | 6.05 | 6.19 | 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 |
| Payables turnover | 10.16 | 9.97 | 9.90 | 9.54 | 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 |
| Working capital turnover | 6.39 | 6.88 | 5.16 | 3.62 | 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 |
Topbuild Corp's activity ratios provide insight into how efficiently the company is managing its assets and working capital.
1. Inventory turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Topbuild Corp's inventory turnover has been fluctuating over the years, decreasing from 16.73 in September 2020 to 8.80 in December 2021. It indicates a decrease in sales relative to inventory on hand in recent years.
2. Receivables turnover: This ratio shows how efficiently a company collects outstanding receivables. Topbuild Corp's receivables turnover has been relatively stable, with a slight increase from 5.15 in December 2021 to 7.07 in December 2024. This suggests that the company is effectively managing its credit policy and collecting receivables in a timely manner.
3. Payables turnover: This ratio measures how quickly a company pays its suppliers. Topbuild Corp's payables turnover has been increasing steadily from 6.72 in December 2021 to 10.16 in December 2024. A higher payables turnover reflects more efficient management of trade credit and better cash flow management.
4. Working capital turnover: This ratio indicates how efficiently a company is utilizing its working capital to generate sales. Topbuild Corp's working capital turnover has been on a declining trend, dropping from 7.58 in December 2021 to 6.39 in December 2024. A decreasing working capital turnover could suggest inefficiencies in utilizing working capital to support sales growth.
Overall, Topbuild Corp's activity ratios suggest varying levels of efficiency in managing inventory, receivables, payables, and working capital over the analyzed period. It is essential for the company to closely monitor these ratios and implement strategies to improve operational efficiency and optimize its working capital management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.00 | 31.12 | 31.49 | 30.67 | 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 |
| Days of sales outstanding (DSO) | days | 51.64 | 57.37 | 60.34 | 58.96 | 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 |
| Number of days of payables | days | 35.91 | 36.62 | 36.88 | 38.26 | 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 |
The Days of Inventory on Hand (DOH) for Topbuild Corp has shown improvement over the past few years, decreasing from 41.48 days as of December 31, 2021, to 32.00 days as of December 31, 2024. This indicates that the company is managing its inventory more efficiently, taking fewer days to turn its inventory into sales.
On the other hand, the Days of Sales Outstanding (DSO) has fluctuated slightly over the same period, with some peaks and troughs. Currently, the DSO stands at 51.64 days as of December 31, 2024. This metric reflects the average number of days it takes for the company to collect revenue after a sale, with a lower number generally indicating more efficient sales collection.
The Number of Days of Payables has consistently decreased for Topbuild Corp, indicating that the company is taking longer to pay its bills. As of December 31, 2024, the company was taking an average of 35.91 days to pay its suppliers.
In summary, Topbuild Corp has improved its inventory management efficiency, maintained a relatively stable sales collection period, and extended its payment terms to suppliers over the period analyzed.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 20.18 | 19.50 | 19.44 | 19.27 | 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 |
| Total asset turnover | 1.12 | 1.13 | 1.06 | 0.97 | 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 |
Topbuild Corp's Fixed Asset Turnover ratio has shown a consistent upward trend from March 31, 2020 to December 31, 2024, indicating that the company is generating more revenue per dollar of fixed assets over time. The ratio increased steadily from 14.17 in March 2020 to 20.18 in December 2024, reaching its peak during the period. This suggests that Topbuild has been effectively utilizing its fixed assets to drive sales and operations.
On the other hand, the Total Asset Turnover ratio fluctuated initially but has shown an overall increasing trend from March 31, 2020 to December 31, 2024. The ratio started at 1.00 in March 2020, dipped to 0.81 in December 2021, and then steadily increased to 1.12 by December 2024. This indicates that the company is generating more revenue per dollar of total assets as time progresses, reflecting improving efficiency in asset utilization.
Overall, both the Fixed Asset Turnover and Total Asset Turnover ratios suggest that Topbuild Corp has been effectively managing and utilizing its assets to generate sales and support its operations as the ratios have generally improved over the years. This trend is a positive indicator of the company's operational efficiency and effectiveness in generating revenue from its investment in assets.