Builders FirstSource Inc (BLDR)

Current ratio

		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
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
Current ratio		1.77	1.77	1.83	2.21	1.77	1.76	1.84	1.83	1.90	1.93	2.09	2.01	1.86	2.08	2.18	1.92	2.07	1.90	1.93	1.87

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,141,240K ÷ $1,777,280K
= 1.77

The current ratio of Builders FirstSource Inc has shown some fluctuations over the reported periods, ranging from a low of 1.76 to a high of 2.21. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. A higher current ratio suggests that the company is more capable of covering its current liabilities, while a lower ratio may indicate potential liquidity issues.

Analyzing the trend, we observe that the current ratio generally increased from March 31, 2020, reaching a peak on June 30, 2022. However, the ratio declined thereafter, dropping to 1.76 on September 30, 2023, before rebounding slightly to 1.77 for the following two periods.

It is important to note that a current ratio above 1 indicates that the company's current assets exceed its current liabilities, which is a positive sign for short-term financial health. However, the fluctuation in the ratio over the periods may warrant further investigation into the company's liquidity management and working capital dynamics.