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