Builders FirstSource Inc (BLDR)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,732,350K)
= 0.00

The debt-to-capital ratio of Builders Firstsource Inc has shown fluctuations over the past five years. In 2019, the ratio was relatively high at 0.61, indicating a higher proportion of debt in the company's capital structure. However, there has been a decreasing trend in the ratio over the subsequent years, reaching 0.40 at the end of 2023.

This decline suggests that Builders Firstsource Inc has been reducing its reliance on debt financing in relation to its total capital. A lower debt-to-capital ratio can be viewed positively as it indicates a lesser financial risk due to a smaller debt burden. It also implies that the company may have improved its financial stability and flexibility over time by increasing its equity financing or reducing its debt levels.

Overall, the decreasing trend in the debt-to-capital ratio of Builders Firstsource Inc signifies a favorable shift towards a more balanced capital structure, which may enhance the company's ability to weather economic fluctuations and pursue growth opportunities.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-capital ratio
Builders FirstSource Inc
BLDR
0.00
Floor & Decor Holdings Inc
FND
0.09
Home Depot Inc
HD
0.00
Lowe's Companies Inc
LOW

See also:

Builders FirstSource Inc Debt to Capital