Builders FirstSource Inc (BLDR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,176,320 | 3,770,210 | 2,387,420 | 543,854 | 392,306 |
| Total assets | US$ in thousands | 10,499,500 | 10,595,200 | 10,714,300 | 4,173,670 | 3,249,490 |
| Operating ROA | 20.73% | 35.58% | 22.28% | 13.03% | 12.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,176,320K ÷ $10,499,500K
= 20.73%
Builders Firstsource Inc's operating return on assets (operating ROA) has shown fluctuating trends over the past five years. In 2023, the operating ROA stands at 20.73%, decreasing from the 2022 level of 35.58%. Despite the decrease, the current operating ROA remains relatively high compared to the levels in 2021 (22.28%), 2020 (13.03%), and 2019 (12.07%).
The significant increase in operating ROA from 2019 to 2020 indicates improved operational efficiency and effectiveness in generating profits from the company's assets. However, the decrease in 2023 compared to the previous year suggests a potential slowdown in profit generation relative to the company's asset base.
Overall, a high operating ROA signifies that Builders Firstsource Inc is effectively utilizing its assets to generate operating profits, although the downward trend in 2023 warrants further investigation into the factors contributing to this decline.
Peer comparison
Dec 31, 2023