Builders FirstSource Inc (BLDR)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	12.42	11.59	11.95	13.38	13.46	11.02	9.36	8.53	10.99	9.95	6.50	6.51	10.25	9.86	11.55	11.05	12.29	11.96	11.49	11.47
Receivables turnover	9.90	9.26	9.92	13.27	13.49	10.47	8.62	8.50	10.11	7.73	6.30	5.93	8.94	8.41	9.76	9.81	10.51	9.52	9.71	10.90
Payables turnover	17.31	14.96	15.33	19.04	23.89	17.81	15.27	11.94	16.34	16.01	10.23	9.19	13.40	11.38	12.82	12.82	15.80	13.93	13.73	15.47
Working capital turnover	11.89	11.16	11.22	13.79	13.72	10.80	8.26	7.92	10.80	8.09	5.48	6.40	7.45	7.97	8.60	9.96	14.99	12.95	12.76	11.78

Builders Firstsource Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 6.76 to 10.50 times per year. This indicates that the company is effectively managing its inventory levels and selling products efficiently.

The receivables turnover ratio has shown consistent improvement, increasing from 8.51 to 13.50 over the same period. This suggests that the company is collecting its accounts receivable at a faster rate, which is a positive sign for cash flow and liquidity.

On the other hand, the payables turnover ratio has been somewhat volatile, with fluctuations between 9.46 and 18.65. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of strong supplier relationships or potential liquidity issues.

The working capital turnover ratio has also shown a positive trend, increasing from 7.94 to 13.81. This indicates that the company is efficiently utilizing its working capital to generate revenue, which is a reflection of effective management of current assets and liabilities.

Overall, while there are some fluctuations in the payables turnover ratio, the inventory turnover, receivables turnover, and working capital turnover ratios suggest that Builders Firstsource Inc is effectively managing its operating cycle and working capital to drive operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	29.38	31.48	30.53	27.28	27.12	33.12	39.02	42.78	33.22	36.68	56.16	56.04	35.60	37.00	31.60	33.03	29.69	30.52	31.77	31.82
Days of sales outstanding (DSO)	days	36.88	39.41	36.78	27.50	27.06	34.86	42.36	42.94	36.10	47.22	57.89	61.58	40.81	43.40	37.38	37.20	34.73	38.34	37.59	33.47
Number of days of payables	days	21.08	24.40	23.80	19.17	15.28	20.49	23.91	30.57	22.34	22.79	35.69	39.72	27.24	32.09	28.48	28.46	23.11	26.21	26.59	23.60

Builders Firstsource Inc's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

The Days of Inventory on Hand (DOH) measures how many days it takes for the company to sell its inventory. The trend shows a slight increase in inventory holding periods in the last two quarters of 2023 compared to the same period in 2022, indicating a potential slowdown in inventory turnover.

The Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect its accounts receivable. The DSO has been relatively stable in 2023 compared to 2022, suggesting consistent collection practices.

The Number of Days of Payables measures how long the company takes to pay its suppliers. During the first quarter of 2022, the company had a longer payable period, but it has reduced significantly since then. This indicates possible improvements in managing payables and potentially taking advantage of longer payment terms.

In conclusion, while the company's inventory turnover may have slowed down slightly, its collection practices have remained steady, and it has been more efficient in paying its suppliers. Monitoring these activity ratios over time can help assess the efficiency of Builders Firstsource Inc's operating cycle.

Long-term

	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
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
Total asset turnover	1.63	1.61	1.72	1.99	2.14	1.99	1.88	1.77	1.85	1.65	1.37	1.17	2.05	1.94	1.98	2.09	2.24	2.22	2.30	2.39

The long-term activity ratios of Builders Firstsource Inc provide insight into the efficiency of the company's utilization of its fixed assets and total assets to generate revenue. The fixed asset turnover ratio, which measures how effectively the company generates revenue from its investment in fixed assets, has been gradually decreasing over the past few quarters, indicating a decline in efficiency in utilizing fixed assets.

On the other hand, the total asset turnover ratio, which reflects the company's ability to generate sales from all assets, has fluctuated over the quarters but generally portrays a decreasing trend. This suggests that the company may be experiencing challenges in effectively utilizing its total assets to generate revenue.

Overall, based on the trend observed in both ratios, it appears that Builders Firstsource Inc may need to review its asset management strategies to optimize efficiency in generating revenue from fixed and total assets.