Builders FirstSource Inc (BLDR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.22 | 2.14 | 2.23 | 3.62 | 3.94 |
Builders Firstsource Inc's solvency ratios have shown improvement over the past five years. The debt-to-assets ratio has decreased from 0.40 in 2019 to 0.30 in 2023, indicating that the company has been able to reduce its reliance on debt to finance its assets.
Similarly, the debt-to-capital ratio has declined from 0.61 in 2019 to 0.40 in 2023, suggesting that the proportion of debt used in the company's capital structure has decreased over the years.
The debt-to-equity ratio has also shown a decreasing trend, declining from 1.57 in 2019 to 0.67 in 2023. This indicates that the company has been reducing its financial leverage by decreasing its reliance on debt to fund its operations.
The financial leverage ratio has also improved, going down from 3.94 in 2019 to 2.22 in 2023, showing that the company's financial risk has reduced over the years.
Overall, the solvency ratios of Builders Firstsource Inc have improved, reflecting a healthier financial position and reduced risk of financial distress.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 10,827.46 | 21,062.63 | 6,631.72 | 381.92 | 351.84 |
Builders Firstsource Inc's interest coverage ratio has been consistently improving over the past five years, indicating the company's increasing ability to cover its interest expenses with its operating income.
The interest coverage ratio has significantly improved from 3.58 in 2019 to 11.33 in 2023. This upward trend reflects the company's enhanced financial strength and ability to meet its interest obligations comfortably.
In 2022 and 2021, the interest coverage ratio stood at 19.01 and 17.57 respectively, indicating a strong financial position during those years. The ratio dipped slightly to 4.01 in 2020, which may suggest a temporary decrease in the company's ability to cover its interest payments from operating income.
Overall, the consistent improvement in Builders Firstsource Inc's interest coverage ratio over the years is a positive indicator of the company's financial stability and ability to manage its debt obligations effectively.