Builders FirstSource Inc (BLDR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,595,203 | 1,781,539 | 1,995,144 | 2,082,733 | 2,176,319 | 2,211,888 | 2,584,790 | 3,373,588 | 3,770,210 | 3,865,995 | 3,688,852 | 3,003,220 | 2,387,371 | 1,979,475 | 1,281,846 | 730,863 | 543,854 | 405,098 | 394,972 | 381,362 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,296,470 | 4,446,670 | 4,304,640 | 4,956,710 | 4,732,350 | 4,580,680 | 4,342,060 | 4,657,230 | 4,962,570 | 5,224,600 | 5,136,350 | 5,136,050 | 4,802,480 | 5,523,430 | 5,482,460 | 4,983,940 | 1,152,780 | 1,007,860 | 915,934 | 833,538 |
| Return on total capital | 37.13% | 40.06% | 46.35% | 42.02% | 45.99% | 48.29% | 59.53% | 72.44% | 75.97% | 74.00% | 71.82% | 58.47% | 49.71% | 35.84% | 23.38% | 14.66% | 47.18% | 40.19% | 43.12% | 45.75% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,595,203K ÷ ($—K + $4,296,470K)
= 37.13%
Builders FirstSource Inc has shown fluctuating returns on total capital over the period under review. The trend indicates a general decrease from the peak of 75.97% in December 2022 to 37.13% in December 2024. Despite the variability, the company has generally maintained relatively high returns on total capital, suggesting efficient capital utilization. The return on total capital peaked in the second quarter of 2022 at 71.82%, showing a strong performance at that point. However, a downward trend since then raises some concerns about the company's ability to sustain high returns in the long term. Investors and stakeholders may wish to further analyze the factors driving these fluctuations to assess the company's financial performance and strategy for capital allocation.
Peer comparison
Dec 31, 2024