Builders FirstSource Inc (BLDR)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	10,583,100	10,499,500	10,595,200	10,714,300	4,173,670
Total stockholders’ equity	US$ in thousands	4,296,470	4,732,350	4,962,570	4,802,480	1,152,780
Financial leverage ratio		2.46	2.22	2.14	2.23	3.62

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,583,100K ÷ $4,296,470K
= 2.46

The financial leverage ratio of Builders FirstSource Inc has shown a decreasing trend over the past five years, declining from 3.62 in December 31, 2020, to 2.46 in December 31, 2024. This suggests that the company has been effectively managing its debt levels in relation to its equity. A lower financial leverage ratio indicates that the company relies less on borrowed funds to finance its operations and investments, which may reduce its financial risk and improve its overall financial stability. The decreasing trend in the ratio could reflect positively on the company's ability to generate earnings to support its capital structure and meet its financial obligations. However, it is important to continue monitoring the trend to ensure the company maintains a healthy balance between debt and equity financing.