Current Ratio
since 2005
Calculation
Builders FirstSource Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.90 | = | 3,497,647) | ÷ | 1,842,779) |
| Dec 31, 2021 | 1.86 | = | 3,968,269) | ÷ | 2,128,711) |
| Dec 31, 2020 | 2.07 | = | 2,223,682) | ÷ | 1,074,853) |
| Dec 31, 2019 | 1.59 | = | 1,306,867) | ÷ | 821,301) |
| Dec 31, 2018 | 1.88 | = | 1,373,751) | ÷ | 731,259) |
| Dec 31, 2017 | 1.75 | = | 1,395,868) | ÷ | 798,354) |
| Dec 31, 2016 | 1.61 | = | 1,215,981) | ÷ | 754,697) |
| Dec 31, 2015 | 1.62 | = | 1,194,329) | ÷ | 735,238) |
| Dec 31, 2014 | 1.93 | = | 331,540) | ÷ | 172,167) |
| Dec 31, 2013 | 2.62 | = | 331,161) | ÷ | 126,423) |
| Dec 31, 2012 | 3.24 | = | 379,872) | ÷ | 117,235) |
| Dec 31, 2011 | 4.33 | = | 319,661) | ÷ | 73,855) |
| Dec 31, 2010 | 3.08 | = | 235,349) | ÷ | 76,451) |
| Dec 31, 2009 | 3.51 | = | 240,342) | ÷ | 68,541) |
| Dec 31, 2008 | 4.24 | = | 310,617) | ÷ | 73,252) |
| Dec 31, 2007 | 3.25 | = | 368,766) | ÷ | 113,477) |
| Dec 31, 2006 | 3.04 | = | 440,311) | ÷ | 144,715) |
| Dec 31, 2005 | 2.09 | = | 442,581) | ÷ | 211,672) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
An examination of the liquidity position from 2005 to 2022 reveals three distinct phases: a period of increasing liquidity, a subsequent phase of contraction and scaling, and a recent period of stabilization.
- Early Liquidity Expansion (2005–2011)
- The current ratio exhibited a strong upward trajectory during this period, rising from 2.09 in 2005 to a peak of 4.33 in 2011. This expansion was primarily driven by a significant reduction in current liabilities, which fell from $211.7 million in 2005 to a low of $68.5 million in 2009, resulting in a highly conservative liquidity posture.
- Liquidity Compression and Asset Scaling (2012–2019)
- A consistent downward trend in the current ratio was observed between 2012 and 2019, with the ratio declining from 3.24 to 1.59. This phase coincided with a massive increase in the scale of the balance sheet. Current assets grew from $379.9 million in 2012 to $1.31 billion by 2019. The compression of the ratio indicates that current liabilities grew at a faster relative pace than current assets during this transition, specifically marked by a sharp increase in liabilities starting in 2015.
- Recent Stabilization (2020–2022)
- From 2020 to 2022, the current ratio stabilized within a range of 1.86 to 2.07. This period was characterized by an unprecedented surge in volume, with current assets peaking at $3.97 billion in 2021. Despite the significant increase in absolute dollar values for both assets and liabilities, the ratio remained steady, suggesting a disciplined management of working capital and a balanced approach to short-term obligations.
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Comparison to Competitors
Builders FirstSource Inc., current ratio, long-term trends, comparison to competitors
| Builders FirstSource Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.90 | 1.22 | 1.39 | 1.38 | 1.16 | 1.25 | 1.32 | 1.09 |
| Dec 31, 2021 | 1.86 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 2.07 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 1.59 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.88 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.75 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.61 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.62 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.93 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 2.62 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 3.24 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 4.33 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 3.08 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 3.51 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 4.24 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 3.25 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 3.04 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 2.09 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Builders FirstSource Inc., current ratio, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.90 | 1.22 |
| Dec 31, 2021 | 1.86 | 1.31 |
| Dec 31, 2020 | 2.07 | 1.43 |
| Dec 31, 2019 | 1.59 | 1.17 |
| Dec 31, 2018 | 1.88 | 1.17 |
| Dec 31, 2017 | 1.75 | 1.29 |
| Dec 31, 2016 | 1.61 | 1.27 |
| Dec 31, 2015 | 1.62 | 1.26 |
| Dec 31, 2014 | 1.93 | 1.29 |
| Dec 31, 2013 | 2.62 | 1.34 |
| Dec 31, 2012 | 3.24 | 1.31 |
| Dec 31, 2011 | 4.33 | 1.29 |
| Dec 31, 2010 | 3.08 | 1.28 |
| Dec 31, 2009 | 3.51 | 1.23 |
| Dec 31, 2008 | 4.24 | 1.07 |
| Dec 31, 2007 | 3.25 | 1.08 |
| Dec 31, 2006 | 3.04 | 1.05 |
| Dec 31, 2005 | 2.09 | 1.03 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Builders FirstSource Inc., current ratio, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.90 | 1.20 |
| Dec 31, 2021 | 1.86 | 1.29 |
| Dec 31, 2020 | 2.07 | 1.41 |
| Dec 31, 2019 | 1.59 | 1.16 |
| Dec 31, 2018 | 1.88 | 1.13 |
| Dec 31, 2017 | 1.75 | 1.24 |
| Dec 31, 2016 | 1.61 | 1.22 |
| Dec 31, 2015 | 1.62 | 1.24 |
| Dec 31, 2014 | 1.93 | 1.26 |
| Dec 31, 2013 | 2.62 | 1.33 |
| Dec 31, 2012 | 3.24 | 1.30 |
| Dec 31, 2011 | 4.33 | 1.30 |
| Dec 31, 2010 | 3.08 | 1.28 |
| Dec 31, 2009 | 3.51 | 1.23 |
| Dec 31, 2008 | 4.24 | 1.06 |
| Dec 31, 2007 | 3.25 | 1.07 |
| Dec 31, 2006 | 3.04 | 1.05 |
| Dec 31, 2005 | 2.09 | 1.05 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).