Builders FirstSource Inc (BLDR)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 10,583,100 10,499,500 10,595,200 10,714,300 4,173,670
Operating ROA 15.07% 20.73% 35.58% 22.28% 13.03%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,595,250K ÷ $10,583,100K
= 15.07%

Builders FirstSource Inc's operating return on assets (Operating ROA) has shown a positive trend over the years based on the provided data.

- The Operating ROA increased significantly from 13.03% as of December 31, 2020, to 22.28% by December 31, 2021, reflecting an improvement in the company's operating efficiency and profitability.
- The trend continued in the following year, with Operating ROA reaching 35.58% as of December 31, 2022, indicating a substantial increase in the company's ability to generate profits from its assets.
- However, there was a slight decline in Operating ROA to 20.73% by December 31, 2023, which could be attributed to various factors impacting the company's operating performance during that period.
- By the end of December 31, 2024, the Operating ROA further decreased to 15.07%, signaling a potential slowdown in the company's profitability relative to its asset base compared to the previous year.

Overall, while there were fluctuations in Builders FirstSource Inc's Operating ROA, the general trend indicated an initial improvement followed by some fluctuations in subsequent years. Monitoring and analyzing this indicator can provide valuable insights into the company's operational efficiency and financial performance.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Builders FirstSource Inc
BLDR
15.07%
Floor & Decor Holdings Inc
FND
5.07%
Home Depot Inc
HD
22.40%
Lowe's Companies Inc
LOW
24.28%