Builders FirstSource Inc (BLDR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.82% | 35.17% | 34.08% | 29.41% | 25.97% |
| Operating profit margin | 9.73% | 12.73% | 16.59% | 12.00% | 6.35% |
| Pretax margin | 8.46% | 11.61% | 15.72% | 11.32% | 4.77% |
| Net profit margin | 6.57% | 9.01% | 12.10% | 8.67% | 3.66% |
Builders FirstSource Inc has shown a positive trend in its profitability ratios over the years. The gross profit margin has improved steadily from 25.97% in 2020 to 32.82% in 2024, indicating better cost management and pricing strategies.
Operating profit margin also increased from 6.35% in 2020 to 9.73% in 2024, despite a slight dip in 2023. This suggests that the company has been able to control its operating expenses efficiently while generating higher revenue.
The pretax margin reflects the company's ability to generate profits before taxes, which has fluctuated but generally increased from 4.77% in 2020 to 8.46% in 2024. This indicates improvements in operational efficiency and income generation.
However, the net profit margin, which represents the final profit after all expenses, decreased from 8.67% in 2021 to 6.57% in 2024, with fluctuations in between. This may imply challenges in managing costs or potential changes in revenue streams.
Overall, while Builders FirstSource Inc has shown positive trends in its profitability ratios, continued monitoring and evaluation of cost management and revenue growth strategies will be crucial to sustaining and improving profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.07% | 20.73% | 35.58% | 22.28% | 13.03% |
| Return on assets (ROA) | 10.19% | 14.67% | 25.95% | 16.10% | 7.51% |
| Return on total capital | 37.13% | 45.99% | 75.97% | 49.71% | 47.18% |
| Return on equity (ROE) | 25.09% | 32.55% | 55.40% | 35.93% | 27.20% |
Builders FirstSource Inc has shown a consistently positive trend in its profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has improved significantly from 13.03% in 2020 to 35.58% in 2022, indicating that the company is generating higher operating income for every dollar of assets employed. However, there was a slight decline in 2023 and 2024 to 20.73% and 15.07%, respectively.
The Return on Assets (ROA) also displayed a similar upward trajectory, increasing from 7.51% in 2020 to 25.95% in 2022 before decreasing to 10.19% in 2024. This ratio signifies the company's ability to generate profit from its total assets, with a peak in 2022.
Return on Total Capital peaked at 75.97% in 2022, indicating the company's effective utilization of both debt and equity capital to generate profits. Despite a slight decrease in subsequent years, the ratio remained above 37% in 2024, showing the company's continued strong performance in generating returns for its capital providers.
Return on Equity (ROE) also demonstrated a positive trend, reaching its highest point of 55.40% in 2022 before decreasing to 25.09% in 2024. This indicates that shareholders' equity was being effectively utilized to generate profits, although at a slightly lower rate in the last reporting period. Overall, the profitability ratios of Builders FirstSource Inc reflect solid performance and efficient use of resources during the analyzed period.