Builders FirstSource Inc (BLDR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	17,096,390	17,276,460	18,503,660	20,901,030	22,698,850	22,968,350	22,715,430	21,365,780	19,858,230	17,789,490	14,576,400	10,945,430	8,553,650	7,782,960	7,468,250	7,426,870	7,277,510	7,336,620	7,474,350	7,631,020
Property, plant and equipment	US$ in thousands	1,803,820	1,763,150	1,676,240	1,605,580	1,567,630	1,491,620	1,420,720	1,386,000	1,385,440	1,336,890	1,300,680	1,297,760	749,130	750,841	743,542	730,738	721,887	696,154	675,310	669,055
Fixed asset turnover		9.48	9.80	11.04	13.02	14.48	15.40	15.99	15.42	14.33	13.31	11.21	8.43	11.42	10.37	10.04	10.16	10.08	10.54	11.07	11.41

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,096,390K ÷ $1,803,820K
= 9.48

Builders Firstsource Inc's fixed asset turnover ratio has been fluctuating over the past eight quarters, ranging from a low of 9.48 in Q4 2023 to a high of 16.01 in Q2 2022. The fixed asset turnover ratio measures the effectiveness of the company in generating sales revenue from its investment in fixed assets.

The trend in the fixed asset turnover ratio indicates that the company has been able to efficiently utilize its fixed assets to generate revenue. A higher ratio suggests that the company is effectively using its fixed assets to generate sales, while a lower ratio may indicate underutilization or inefficiency in asset management.

The decreasing trend from Q2 2022 to Q4 2023 may imply that the company has either increased its investment in fixed assets without a proportional increase in sales, or that sales have declined relative to the level of fixed assets. It may be worth further investigation to understand the factors contributing to this trend and determine if there are any operational inefficiencies that need to be addressed.

Overall, the company's fixed asset turnover ratio suggests that it has been efficiently utilizing its fixed assets to generate sales revenue, but the recent decline in the ratio warrants attention to ensure optimal asset utilization and profitability.