Builders FirstSource Inc (BLDR)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	10,499,500	10,736,800	10,733,100	10,476,900	10,595,200	11,537,700	12,085,900	12,051,200	10,714,300	10,809,100	10,626,100	9,379,510	4,173,670	4,014,930	3,764,680	3,561,360	3,249,490	3,297,760	3,249,970	3,199,460
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $10,499,500K
= 0.00

Builders Firstsource Inc's debt-to-assets ratio has shown some fluctuation over the past eight quarters. The ratio ranged from 0.28 to 0.34 during this period. In Q4 2023, the ratio stood at 0.30, indicating that the company financed approximately 30% of its assets with debt.

The trend in the debt-to-assets ratio suggests that the company has maintained a relatively conservative approach to debt financing, with the ratio remaining below 0.35 throughout the period. A lower debt-to-assets ratio generally signifies lower financial risk as it indicates that the company's assets are predominantly financed through equity rather than debt.

The slight increase in the ratio from Q3 to Q4 2023 may indicate a modest increase in debt relative to assets during that period. However, it is important to note that the ratio has not exceeded 0.34 in the past two years, indicating a consistent level of prudence in managing debt levels.

Overall, the debt-to-assets ratio suggests that Builders Firstsource Inc has maintained a balanced capital structure, with a reasonable proportion of assets being financed through debt while also having a significant equity cushion.