Builders FirstSource Inc (BLDR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,540,560	2,749,370	1,725,420	313,537	221,809
Total assets	US$ in thousands	10,499,500	10,595,200	10,714,300	4,173,670	3,249,490
ROA		14.67%	25.95%	16.10%	7.51%	6.83%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,540,560K ÷ $10,499,500K
= 14.67%

Builders Firstsource Inc's return on assets (ROA) has shown fluctuating trends over the past five years. The ROA decreased from 6.83% in 2019 to 7.51% in 2020, indicating a slight improvement in the company's ability to generate profit from its assets. The ROA then experienced a significant surge to 16.10% in 2021, suggesting a substantial increase in profitability relative to its total assets.

The following year, the ROA dropped to 25.95% in 2022, demonstrating a decline in profitability despite still being relatively high. In the most recent year, the ROA decreased to 14.67%, reflecting a downward trend in the company's asset utilization efficiency.

Overall, while experiencing fluctuations, Builders Firstsource Inc has generally shown the ability to generate positive returns on its assets. The company's challenge lies in maintaining or improving its ROA to ensure sustained profitability and efficient asset utilization in the future. Additional analysis into the factors influencing these fluctuations could provide further insights into the company's financial performance and strategies.