Builders FirstSource Inc (BLDR)

Total asset 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
Total assets	US$ in thousands	10,499,500	10,595,200	10,714,300	4,173,670	3,249,490
Total asset turnover		1.63	2.14	1.86	2.05	2.24

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $17,096,400K ÷ $10,499,500K
= 1.63

Builders Firstsource Inc's total asset turnover has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover ratio is generally preferred as it suggests that the company is generating more revenue per dollar of assets.

In 2023, the total asset turnover ratio decreased to 1.63 from 2.14 in 2022. This could indicate a reduction in sales relative to the total assets employed, highlighting potential inefficiencies in asset utilization. Further analysis is needed to understand the reasons behind this drop.

Comparing 2023 with the ratios in 2021, 2020, and 2019, where the ratios were 1.86, 2.05, and 2.24 respectively, the trend shows a general decline in the efficiency of asset turnover over the years. This trend may raise concerns about the company's ability to generate revenue from its assets effectively.

Overall, a lower total asset turnover ratio for Builders Firstsource Inc in 2023 compared to previous years suggests a potential inefficiency in asset utilization and may warrant a closer examination of the company's operational and financial performance.