Builders FirstSource Inc (BLDR)

Total asset 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
Revenue (ttm)	US$ in thousands	16,400,480	16,731,040	17,032,810	17,105,360	17,097,320	17,304,020	18,531,220	20,928,590	22,726,410	23,003,660	22,750,790	21,401,210	19,893,860	17,789,810	14,576,670	10,945,630	8,558,870	7,791,680	7,477,270	7,436,150
Total assets	US$ in thousands	10,583,100	10,894,100	10,721,200	11,168,400	10,749,700	10,736,800	10,733,100	10,476,900	10,595,200	11,537,700	12,085,900	12,051,200	10,714,300	10,809,100	10,626,100	9,379,510	4,173,670	4,014,930	3,764,680	3,561,360
Total asset turnover		1.55	1.54	1.59	1.53	1.59	1.61	1.73	2.00	2.14	1.99	1.88	1.78	1.86	1.65	1.37	1.17	2.05	1.94	1.99	2.09

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $16,400,480K ÷ $10,583,100K
= 1.55

Builders FirstSource Inc's total asset turnover has fluctuated over the given period, ranging from a low of 1.17 in March 2021 to a high of 2.14 in December 2022. The ratio measures how efficiently the company is utilizing its assets to generate revenue, with a higher ratio generally indicating better asset utilization.

In the initial years, the total asset turnover showed a positive trend, indicating efficient asset management. However, there was a noticeable decline in the ratio from June 2023 to December 2024. This could suggest a decrease in sales generated per dollar of assets during this period.

It is essential for the company to closely monitor its asset turnover ratio to ensure efficient utilization of resources and to identify any potential inefficiencies in managing its assets effectively. It may consider strategies to improve asset turnover, such as optimizing inventory levels, managing receivables efficiently, or investing in assets that directly contribute to revenue generation.