Builders FirstSource Inc (BLDR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	17,096,400	22,698,900	19,890,500	8,550,750	7,271,130
Receivables	US$ in thousands	1,727,230	1,683,100	1,963,870	956,454	692,393
Receivables turnover		9.90	13.49	10.13	8.94	10.50

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $17,096,400K ÷ $1,727,230K
= 9.90

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is collecting payments more frequently, which is generally viewed as positive.

Analyzing the historical data of Builders Firstsource Inc's receivables turnover:
- In 2023, the receivables turnover ratio was 9.90, which indicates that the company collected its accounts receivable almost 10 times during the year.
- A significant decrease from the prior year's ratio of 13.50 in 2022 may indicate that the company took longer to collect payments from customers in 2023 compared to 2022.
- In 2021 and 2019, the company had receivables turnover ratios of 10.13 and 10.51, respectively, showing relatively consistent collection efficiency during those years.
- The ratio was lowest at 8.95 in 2020, suggesting a potential challenge in collecting payments efficiently that year.

Overall, while the receivables turnover ratios fluctuated over the years, the company generally maintained a moderate level of efficiency in collecting payments from customers. Further analysis of the underlying reasons for fluctuations in the ratio could provide insights into the company's customer credit policies, collection practices, and overall financial health.