Builders FirstSource Inc (BLDR)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	16,400,500	17,097,300	22,726,400	19,893,900	8,558,870
Total current assets	US$ in thousands	3,141,240	3,300,730	3,497,650	3,968,270	2,223,680
Total current liabilities	US$ in thousands	1,777,280	1,863,440	1,842,780	2,128,710	1,074,850
Working capital turnover		12.02	11.90	13.73	10.81	7.45

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $16,400,500K ÷ ($3,141,240K – $1,777,280K)
= 12.02

Builders FirstSource Inc's working capital turnover has been on an increasing trend over the past five years, indicating improved efficiency in utilizing its working capital. The ratio has shown consistent growth from 7.45 in December 31, 2020, to 12.02 in December 31, 2024.

This signifies that for each dollar of working capital invested, the company generated sales turnover of $10.81 in December 31, 2021, up to $12.02 by December 31, 2024. This suggests that the company has been managing its working capital effectively to support its operations and generate revenue.

The recent peak in the ratio at 13.73 in December 31, 2022, indicates the company's ability to efficiently use its working capital to support its business activities during that period. However, the slight decline in 2023 to 11.90 could be a signal for further analysis to understand the factors affecting the company's working capital efficiency.

Overall, a higher working capital turnover ratio reflects better efficiency in managing working capital and converting it into sales, indicating positive performance and financial health for Builders FirstSource Inc.