Builders FirstSource Inc (BLDR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.17% | 34.12% | 29.42% | 25.99% | 27.19% |
| Operating profit margin | 12.73% | 16.61% | 12.00% | 6.36% | 5.40% |
| Pretax margin | 11.61% | 15.74% | 11.32% | 4.77% | 3.89% |
| Net profit margin | 9.01% | 12.11% | 8.67% | 3.67% | 3.05% |
Builders Firstsource Inc has shown a consistent improvement in profitability over the past five years, as evidenced by its increasing gross profit margins from 27.15% in 2019 to 35.17% in 2023. This indicates the company's ability to control its cost of goods sold relative to its revenue.
Operating profit margins have also improved significantly, from 5.39% in 2019 to 12.73% in 2023, showing the company's efficiency in managing its operating expenses. The pretax margin has followed a similar upward trend, increasing from 3.88% in 2019 to 11.61% in 2023, indicating improved profitability before accounting for taxes.
Net profit margins have also shown steady growth, from 3.05% in 2019 to 9.01% in 2023, highlighting the company's ability to generate profits after all expenses, including interest and taxes, have been accounted for.
Overall, Builders Firstsource Inc's profitability ratios demonstrate a positive trend, reflecting effective cost management and improved operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.73% | 35.58% | 22.28% | 13.03% | 12.07% |
| Return on assets (ROA) | 14.67% | 25.95% | 16.10% | 7.51% | 6.83% |
| Return on total capital | 45.99% | 75.97% | 49.71% | 47.18% | 47.55% |
| Return on equity (ROE) | 32.55% | 55.40% | 35.93% | 27.20% | 26.89% |
Builders Firstsource Inc has shown a consistent positive trend in profitability ratios over the last five years. The Operating return on assets (Operating ROA) has steadily increased from 12.07% in 2019 to 20.73% in 2023, indicating the company's ability to generate operating profits from its assets. This suggests efficient asset utilization and effective cost management.
Similarly, the Return on assets (ROA) has also exhibited a positive trend, increasing from 6.83% in 2019 to 14.67% in 2023. This ratio signifies the company's overall ability to generate profits from its total assets, reflecting improved profitability over the years.
The Return on total capital has shown a significant increase, climbing from 18.54% in 2019 to 27.50% in 2023. This ratio indicates how well the company generates returns from both equity and debt capital invested in the business.
The Return on equity (ROE) has also experienced a notable improvement, rising from 26.89% in 2019 to 32.55% in 2023. This ratio reflects the company's ability to generate returns for its shareholders from the equity invested in the business.
Overall, the profitability ratios of Builders Firstsource Inc showcase a positive performance trajectory, indicating effective management of assets, capital, and equity to enhance profitability and create value for stakeholders.