Stock Analysis on Net
Stock Analysis on Net

Builders FirstSource Inc. (NYSE:BLDR)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Common-Size Income Statement 

Builders FirstSource Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -65.92 -70.59 -74.03 -72.85 -75.11
Gross margin 34.08% 29.41% 25.97% 27.15% 24.89%
Selling, general and administrative expenses -17.49 -17.41 -19.61 -21.76 -20.12
Income from operations 16.59% 12.00% 6.35% 5.39% 4.78%
Interest expense, net -0.87 -0.68 -1.59 -1.50 -1.40
Income before income taxes 15.72% 11.32% 4.77% 3.88% 3.38%
Income tax expense -3.62 -2.64 -1.11 -0.84 -0.72
Net income 12.10% 8.67% 3.66% 3.05% 2.66%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Cost of Sales
The cost of sales as a percentage of net sales showed a notable declining trend over the five-year period. It decreased steadily from -75.11% in 2018 to -65.92% in 2022, indicating enhanced efficiency or cost control in production and procurement processes.
Gross Margin
Corresponding to the reduction in cost of sales, the gross margin percentage improved consistently each year, rising from 24.89% in 2018 to 34.08% in 2022. This growth indicates a stronger profitability position at the gross level during the period under review.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses as a percentage of net sales decreased from -20.12% in 2018 to -17.49% in 2022, with a minor fluctuation in 2019. This suggests improved operational leverage or better expense management relative to revenue growth, contributing positively to overall profitability.
Income from Operations
This metric experienced substantial improvement, rising from 4.78% of net sales in 2018 to 16.59% in 2022. The increase was particularly significant after 2020, indicating increased operational efficiency and stronger earnings power from the company’s core activities.
Interest Expense, Net
Interest expense relative to net sales declined from -1.4% in 2018 to -0.87% in 2022, though a slight increase is noted from 2021 onward after a low point of -0.68%. Overall, the lower interest burden suggests a possible improvement in capital structure or reduced reliance on costly debt financing.
Income Before Income Taxes
The percentage of net sales represented by income before taxes increased markedly from 3.38% in 2018 to 15.72% in 2022, following a trajectory similar to operating income. This reflects the impact of both higher operating income and lower relative interest costs on profitability before tax obligations.
Income Tax Expense
The income tax expense as a percentage of net sales rose from -0.72% in 2018 to -3.62% in 2022. Although this trend shows increasing tax liability, it corresponds with significantly higher pre-tax income levels, suggesting overall profitability growth despite higher absolute taxes paid.
Net Income
Net income relative to net sales exhibited a strong upward trend, increasing from 2.66% in 2018 to 12.1% in 2022. This substantial improvement in net profitability reflects effective cost control, better operational performance, and a favorable tax environment over the period analyzed.