Builders FirstSource Inc (BLDR)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,077,900	1,540,560	2,749,370	1,725,420	313,537
Total stockholders’ equity	US$ in thousands	4,296,470	4,732,350	4,962,570	4,802,480	1,152,780
ROE		25.09%	32.55%	55.40%	35.93%	27.20%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,077,900K ÷ $4,296,470K
= 25.09%

Builders FirstSource Inc's return on equity (ROE) has shown significant fluctuations over the past five years. Starting at 27.20% in December 2020, the ROE increased to 35.93% by December 2021, indicating improved profitability in the company.

Subsequently, there was a substantial jump in ROE to 55.40% by December 2022, reflecting a strong performance in generating profits relative to shareholders' equity. However, in December 2023, the ROE dropped to 32.55%, indicating a slight decline in profitability compared to the previous year.

In the most recent year, December 2024, the ROE decreased further to 25.09%, suggesting a reduction in profitability relative to shareholders' equity. Overall, while Builders FirstSource Inc has demonstrated strong ROE performance over the past five years, the fluctuations in the ratio indicate the need for continuous monitoring and analysis of the company's financial performance.