Builders FirstSource Inc (BLDR)

Working capital 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 current assets	US$ in thousands	3,141,240	3,474,410	3,454,700	3,943,290	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
Total current liabilities	US$ in thousands	1,777,280	1,958,880	1,892,540	1,781,500	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
Working capital turnover		12.02	11.04	10.90	7.91	11.90	11.18	11.24	13.81	13.73	10.82	8.28	7.94	10.81	8.09	5.48	6.40	7.45	7.98	8.61	9.97

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $16,400,480K ÷ ($3,141,240K – $1,777,280K)
= 12.02

Builders FirstSource Inc's working capital turnover has shown fluctuating trends over the reported periods. The ratio ranged from a high of 13.81 on March 31, 2023, to a low of 5.48 on June 30, 2021. The overall trend indicates a general decrease in working capital turnover in the recent periods.

A higher working capital turnover ratio typically indicates that the company is efficiently using its working capital to generate sales. On the other hand, a lower ratio suggests potential inefficiencies in managing working capital.

It is essential for Builders FirstSource Inc to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and to maintain liquidity. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's operational efficiency and financial performance.