Builders FirstSource Inc (BLDR)

Working capital 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 current assets	US$ in thousands	3,300,730	3,497,650	3,968,270	2,223,680	1,306,870
Total current liabilities	US$ in thousands	1,863,440	1,842,780	2,128,710	1,074,850	821,301
Working capital turnover		11.89	13.72	10.81	7.44	14.97

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,096,400K ÷ ($3,300,730K – $1,863,440K)
= 11.89

The working capital turnover ratio for Builders Firstsource Inc has shown fluctuations over the past five years, ranging from a low of 7.45 in 2020 to a high of 14.99 in 2019. This ratio indicates the company's efficiency in utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively managing its working capital to support its operations and generate sales. The gradual increase from 7.45 in 2020 to 11.90 in 2023 indicates an improvement in the company's ability to utilize its working capital efficiently. However, the ratio dipped in 2021 before increasing again in 2022 and 2023. This trend suggests that the company may have faced challenges in managing its working capital in 2021 but subsequently improved its efficiency in the following years. Overall, the upward trend in the working capital turnover ratio is a positive sign of operational efficiency and effective capital utilization by Builders Firstsource Inc.