Builders FirstSource Inc (BLDR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,732,350K
= 0.00
The debt-to-equity ratio of Builders Firstsource Inc has shown a decreasing trend over the past five years, indicating improvements in the company's financial leverage. From a high of 1.57 in 2019, the ratio has steadily declined to 0.67 in 2023.
A debt-to-equity ratio of 0.67 in 2023 suggests that the company is financing its operations with a moderately lower proportion of debt relative to equity, signifying a more balanced capital structure. This may imply a reduced financial risk for the company as it indicates a lesser reliance on debt financing.
The decreasing trend in the debt-to-equity ratio could be a result of the company actively managing its debt levels, potentially paying down debt or increasing equity through retained earnings or equity issuances. Overall, the declining debt-to-equity ratio reflects a positive financial strategy and a strengthening financial position for Builders Firstsource Inc.
Peer comparison
Dec 31, 2023