Builders FirstSource Inc (BLDR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,258,800 | 19,260,700 | 17,866,700 | 8,043,440 | 6,909,400 |
| Payables | US$ in thousands | 881,384 | 803,479 | 1,093,370 | 600,357 | 436,823 |
| Payables turnover | 17.31 | 23.97 | 16.34 | 13.40 | 15.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,258,800K ÷ $881,384K
= 17.31
Builders Firstsource Inc's payables turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays its suppliers in a given period. A higher payables turnover ratio generally implies that the company is paying its suppliers more frequently.
In 2023, the payables turnover ratio decreased to 12.58 from 18.65 in 2022, indicating that the company took longer to pay its suppliers compared to the previous year. However, despite the decrease, the ratio remains relatively high, suggesting that Builders Firstsource Inc is still managing its payables effectively.
In comparison to 2021 and 2020, the payables turnover ratio in 2023 is lower but higher than in 2019. This trend indicates some variability in the company's payment patterns over the years, possibly influenced by changes in the company's business operations or supplier relationships.
Overall, while the decrease in payables turnover from 2022 to 2023 may raise some questions about the company's payment practices, the ratio remains at a generally favorable level, indicating efficient management of payables by Builders Firstsource Inc.
Peer comparison
Dec 31, 2023