Builders FirstSource Inc (BLDR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Builders FirstSource Inc has consistently maintained a strong solvency position, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all reported periods. This suggests that the company has minimal financial leverage through debt compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio has shown a decreasing trend over the analyzed periods, starting at 4.27 in March 31, 2020, and gradually decreasing to 2.46 by December 31, 2024. This decreasing trend highlights the company's efforts to efficiently manage its debt levels and reduce its reliance on borrowed funds for operations.
Overall, the solvency ratios indicate that Builders FirstSource Inc has a strong financial position with minimal debt levels and a decreasing reliance on debt financing, which bodes well for its long-term financial sustainability and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.68 | 8.85 | 10.11 | 10.50 | 11.33 | 11.79 | 14.24 | 16.94 | 19.01 | 19.68 | 19.59 | 20.66 | 17.57 | 15.90 | 11.00 | 6.32 | 4.01 | 3.02 | 2.95 | 2.79 |
Builders FirstSource Inc's interest coverage ratio has shown a generally positive trend over the past few years, increasing steadily from 2.79 as of March 31, 2020, to a peak of 20.66 as of March 31, 2022. This indicates that the company's ability to meet its interest obligations from its earnings has significantly improved.
However, there was a slight decrease in the interest coverage ratio in the subsequent quarters, dipping to around 14-16 range by June 30, 2023, and staying relatively stable within that range until December 31, 2024, where it stood at 7.68. Even though the ratio has declined from its peak, it still suggests that Builders FirstSource Inc has a healthy capacity to cover its interest expenses using its operating income.
Overall, the interest coverage ratios of Builders FirstSource Inc demonstrate a generally positive performance, indicating an improved ability to service its debt obligations with operating profits. It is important for investors and stakeholders to monitor these ratios to ensure the company maintains a healthy financial position in the long term.