Builders FirstSource Inc (BLDR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	11,017,520	11,117,300	11,224,300	11,164,580	11,084,990	11,271,450	12,065,020	13,645,190	14,982,040	15,258,610	15,308,020	14,787,440	14,042,900	12,755,460	10,684,120	8,118,900	6,336,290	5,761,740	5,476,830	5,435,890
Inventory	US$ in thousands	1,212,380	1,203,920	1,289,710	1,356,910	1,228,260	1,331,510	1,362,250	1,336,160	1,426,200	1,758,880	2,065,350	2,188,060	1,626,240	1,616,550	2,074,450	1,585,610	784,527	751,149	615,142	640,048
Inventory turnover		9.09	9.23	8.70	8.23	9.02	8.47	8.86	10.21	10.50	8.68	7.41	6.76	8.64	7.89	5.15	5.12	8.08	7.67	8.90	8.49

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,017,520K ÷ $1,212,380K
= 9.09

Builders FirstSource Inc's inventory turnover has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a low of 5.12 to a high of 10.50.

Overall, the company's inventory turnover has been relatively healthy, averaging around 8 times per year during this period. A higher inventory turnover ratio indicates that the company is managing its inventory efficiently by quickly selling and replenishing its stock.

The recent decrease in inventory turnover from March 31, 2024, to September 30, 2024, followed by a slight increase in the subsequent quarter, may suggest potential challenges in managing inventory levels effectively.

Builders FirstSource Inc should continue to monitor its inventory turnover ratio to ensure optimal inventory management and seek opportunities to improve efficiency in inventory turnover.