Builders FirstSource Inc (BLDR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		1.77	1.90	1.86	2.07	1.59

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,300,730K ÷ $1,863,440K
= 1.77

Builders Firstsource Inc's current ratio has fluctuated over the past five years, ranging from 1.59 to 2.07. The current ratio measures the company's ability to cover short-term liabilities with its current assets. A higher current ratio indicates better liquidity and financial health as it means the company has more assets that can be quickly converted into cash to pay off its short-term obligations.

In 2023, the current ratio stands at 1.77, showing a decrease compared to the previous year. While the current ratio is still above 1, indicating that the company has sufficient current assets to cover its current liabilities, the downward trend may signal a slightly weaker liquidity position compared to the prior year.

It is important for investors and stakeholders to monitor the current ratio trend over time to assess the company's ability to meet its short-term financial obligations and manage its working capital effectively.