Builders FirstSource Inc (BLDR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	11,017,400	11,085,000	14,982,000	14,042,900	6,336,290
Inventory	US$ in thousands	1,212,380	1,228,260	1,426,200	1,626,240	784,527
Inventory turnover		9.09	9.02	10.50	8.64	8.08

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $11,017,400K ÷ $1,212,380K
= 9.09

Builders FirstSource Inc's inventory turnover has shown a generally positive trend over the past five years. The ratio increased from 8.08 in December 2020 to 9.09 by December 2024. This indicates that the company is managing its inventory efficiently, with the ability to sell and replace its inventory multiple times throughout the year.

The year with the highest inventory turnover was December 2022 at 10.50, suggesting that the company optimized its inventory management that year. However, there was a slight dip in inventory turnover in December 2023 to 9.02 before slightly rebounding in December 2024.

Overall, the increasing trend in inventory turnover reflects effective inventory management practices within Builders FirstSource Inc, allowing the company to maximize sales while minimizing holding costs and potential obsolescence risks. It indicates that the company is able to convert its inventory into sales at a relatively steady and efficient pace over the analyzed period.