Builders FirstSource Inc (BLDR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,176,320 | 3,770,210 | 2,387,420 | 543,854 | 392,306 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,732,350 | 4,962,570 | 4,802,480 | 1,152,780 | 824,953 |
| Return on total capital | 45.99% | 75.97% | 49.71% | 47.18% | 47.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,176,320K ÷ ($—K + $4,732,350K)
= 45.99%
Builders Firstsource Inc's return on total capital has shown variability over the past five years. In 2023, the return on total capital stood at 27.50%, representing a decrease from the previous year's exceptionally high level of 47.44%. While the return decreased in 2023, it remained relatively strong compared to 2021 and 2020 when it was 30.88% and 19.58% respectively. The company experienced a notable improvement in return on total capital from 2019 to 2020, suggesting successful capital utilization and potentially increased profitability. Despite the fluctuation in performance, Builders Firstsource Inc has generally demonstrated an ability to generate returns on its total capital investment over the period under review.
Peer comparison
Dec 31, 2023