Builders FirstSource Inc (BLDR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,176,319 | 2,211,888 | 2,584,790 | 3,373,588 | 3,770,210 | 3,865,995 | 3,688,905 | 3,003,273 | 2,387,424 | 1,979,528 | 1,281,846 | 730,863 | 543,854 | 405,098 | 394,972 | 381,362 | 392,306 | 407,645 | 399,801 | 388,715 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 824,953 | 779,001 | 704,131 | 632,471 |
| Return on total capital | 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% | 47.55% | 52.33% | 56.78% | 61.46% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,176,319K ÷ ($—K + $4,732,350K)
= 45.99%
Builders Firstsource Inc has exhibited fluctuating returns on total capital over the past eight quarters. The return on total capital ranged from a low of 27.50% in Q4 2023 to a high of 47.44% in Q4 2022. This indicates that the company's ability to generate earnings relative to its total capital employed has varied significantly during this period.
The return on total capital peaked in Q4 2022 at 47.44% and has since experienced a declining trend until Q4 2023. The latest return on total capital in Q4 2023 was 27.50%, reflecting a decrease compared to the previous quarters. This decline may indicate a potential decrease in efficiency or profitability of the company in utilizing its total capital to generate returns.
Overall, the return on total capital for Builders Firstsource Inc has shown fluctuations over the past eight quarters, with some quarters demonstrating stronger performance than others. Investors and stakeholders should closely monitor these trends to assess the company's financial health and efficiency in leveraging its total capital effectively.
Peer comparison
Dec 31, 2023