Builders FirstSource Inc (BLDR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	10,583,100	10,894,100	10,721,200	11,168,400	10,749,700	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
Total stockholders’ equity	US$ in thousands	4,296,470	4,446,670	4,304,640	4,956,710	4,732,350	4,580,680	4,342,060	4,657,230	4,962,570	5,224,600	5,136,350	5,136,050	4,802,480	5,523,430	5,482,460	4,983,940	1,152,780	1,007,860	915,934	833,538
Financial leverage ratio		2.46	2.45	2.49	2.25	2.27	2.34	2.47	2.25	2.14	2.21	2.35	2.35	2.23	1.96	1.94	1.88	3.62	3.98	4.11	4.27

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 period from March 31, 2020, to December 31, 2024. The ratio started at 4.27 in March 2020, indicating a high level of financial leverage, and gradually declined to 2.46 by December 31, 2024. This downward trend suggests that the company has been reducing its reliance on debt to finance its operations over time.

However, it is important to note that the ratio fluctuated within a certain range during the period under review, reaching a low point of 1.88 in March 31, 2021, and a high of 4.27 in March 31, 2020. From June 30, 2021, to March 31, 2023, the ratio remained relatively stable within the range of 1.94 to 2.47, indicating a moderate level of financial leverage.

Overall, the decreasing trend in the financial leverage ratio suggests that Builders FirstSource Inc has been successfully managing its debt levels and improving its financial stability over the years.