Builders FirstSource Inc (BLDR)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,595,250	2,176,320	3,770,210	2,387,420	543,854
Revenue	US$ in thousands	16,400,500	17,097,300	22,726,400	19,893,900	8,558,870
Operating profit margin		9.73%	12.73%	16.59%	12.00%	6.35%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,595,250K ÷ $16,400,500K
= 9.73%

Builders FirstSource Inc's operating profit margin has shown significant variability over the past five years. Starting at 6.35% at the end of 2020, the margin more than doubled by the end of 2021, reaching 12.00%. There was a further increase to 16.59% by the end of 2022, indicating strong operational efficiency and cost management during that period.

However, the operating profit margin declined to 12.73% by the end of 2023, suggesting potential challenges faced by the company in maintaining the high level of profitability seen in the previous year. By the end of 2024, the margin decreased further to 9.73%, indicating a continued downward trend in profitability.

Overall, while there have been periods of strong performance in terms of operating profit margin, Builders FirstSource Inc experienced fluctuations that may require further analysis to understand the reasons behind these changes and to identify strategies to sustain or improve profitability in the future.