Builders FirstSource Inc (BLDR)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	17,096,390	17,276,460	18,503,660	20,901,030	22,698,850	22,968,350	22,715,430	21,365,780	19,858,230	17,789,490	14,576,400	10,945,430	8,553,650	7,782,960	7,468,250	7,426,870	7,277,510	7,336,620	7,474,350	7,631,020
Total current assets	US$ in thousands	3,300,730	3,574,110	3,605,220	3,347,290	3,497,650	4,420,130	5,277,320	5,379,930	3,968,270	4,231,230	4,915,080	3,570,670	2,223,680	2,061,740	1,801,590	1,604,880	1,306,870	1,430,080	1,433,960	1,385,750
Total current liabilities	US$ in thousands	1,863,440	2,026,680	1,955,860	1,831,930	1,842,780	2,293,730	2,528,810	2,683,070	2,128,710	2,033,180	2,252,750	1,861,180	1,074,850	1,084,870	933,106	859,013	821,301	863,745	848,219	737,911
Working capital turnover		11.89	11.16	11.22	13.79	13.72	10.80	8.26	7.92	10.80	8.09	5.48	6.40	7.45	7.97	8.60	9.96	14.99	12.95	12.76	11.78

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,096,390K ÷ ($3,300,730K – $1,863,440K)
= 11.89

Builders Firstsource Inc's working capital turnover has shown fluctuating trends over the past eight quarters. The ratio has ranged from a low of 7.94 in Q1 2022 to a high of 13.81 in Q1 2023, indicating variations in how efficiently the company is utilizing its working capital to generate sales revenue.

Overall, the average working capital turnover for the period is approximately 10.97, suggesting that, on average, Builders Firstsource Inc is generating sales nearly 11 times for every dollar of working capital invested.

The upward and downward movements in the ratio may reflect changes in the company's operating efficiency, investment in working capital, or changes in sales revenue. It would be valuable to further investigate the underlying reasons for these fluctuations to assess the effectiveness of the company's working capital management strategies.