Builders FirstSource Inc (BLDR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	17,096,400	22,698,900	19,890,500	8,550,750	7,271,130
Property, plant and equipment	US$ in thousands	1,803,820	1,567,630	1,385,440	749,130	721,887
Fixed asset turnover		9.48	14.48	14.36	11.41	10.07

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,096,400K ÷ $1,803,820K
= 9.48

Builders Firstsource Inc's fixed asset turnover has fluctuated over the past five years, ranging from a low of 9.48 in 2023 to a high of 14.50 in 2022. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which is generally viewed positively as it suggests efficient asset utilization.

In 2023, the fixed asset turnover decreased compared to the previous year, which may indicate a decrease in revenue generated relative to fixed assets. It is important to further investigate the reasons behind this decrease. However, the company still maintains a relatively high fixed asset turnover compared to earlier years, indicating efficiency in utilizing fixed assets.

In 2022, Builders Firstsource Inc achieved its highest fixed asset turnover in the past five years, indicating strong utilization of fixed assets to generate revenue. This could be attributed to improved operational efficiency, effective asset management, or increased sales.

Overall, the fluctuation in fixed asset turnover over the years suggests varying levels of asset utilization efficiency by Builders Firstsource Inc. Further analysis of the company's operations and strategic decisions would provide more insights into the factors driving these fluctuations.