Builders FirstSource Inc (BLDR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	9.09	9.02	10.50	8.64	8.08
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	12.02	11.90	13.73	10.81	7.45

Based on the provided data, let's analyze the activity ratios of Builders FirstSource Inc:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Builders FirstSource Inc's inventory turnover has been improving steadily over the years. It increased from 8.08 in 2020 to 9.09 in 2024. This indicates that the company is selling its inventory at a faster rate, which is a positive sign of efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio shows how many times a company collects its accounts receivable during a period. In this case, the data shows that the receivables turnover ratio is not available for any of the years provided. This could be due to the nature of the company's business or data availability.

3. Payables Turnover:
- The payables turnover ratio reflects how efficiently a company pays its suppliers. Similar to the receivables turnover ratio, the payables turnover ratio is not available for any of the years provided. This lack of data may limit our ability to assess the company's payables management efficiency.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales. Builders FirstSource Inc's working capital turnover has shown an increasing trend over the years, from 7.45 in 2020 to 12.02 in 2024. This implies that the company is effectively utilizing its working capital to support its sales growth.

In conclusion, while the inventory turnover and working capital turnover ratios of Builders FirstSource Inc indicate positive trends in inventory and working capital management efficiency, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	40.17	40.44	34.75	42.27	45.19
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Builders FirstSource Inc's activity ratios show efficiency in managing inventory levels. The days of inventory on hand (DOH) have gradually decreased from 45.19 days in December 2020 to 40.17 days by December 2024. This indicates that the company is selling its inventory more quickly over the years.

On the other hand, the days of sales outstanding (DSO) and number of days of payables data are not available, suggesting that the company's accounts receivable collection period and payment terms with suppliers have not been provided in the data.

Overall, based on the decreasing trend in days of inventory on hand, Builders FirstSource Inc appears to be effectively managing its inventory levels to support its operations and meet customer demand efficiently. Tracking the DSO and payables turnover would provide a more comprehensive analysis of the company's efficiency in managing its working capital.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	11.07	10.79	11.43
Total asset turnover	1.55	1.63	2.14	1.86	2.05

The fixed asset turnover ratio for Builders FirstSource Inc has been relatively stable over the years, ranging from 10.79 to 11.43, indicating the company efficiently generates sales from its fixed assets. This suggests that the company is effectively utilizing its property, plant, and equipment to generate revenue.

In contrast, the total asset turnover ratio shows a more fluctuating trend, with values ranging from 1.55 to 2.14. This indicates that the company's ability to generate sales from its total assets has varied, possibly due to changes in the company's sales operations or asset base efficiency.

Overall, while the fixed asset turnover ratio suggests effective management of fixed assets to generate revenue, the total asset turnover ratio highlights fluctuations in the company's ability to generate sales from all its assets, which may warrant further investigation into the company's operational efficiency and asset utilization strategies.