Net Profit Margin
since 2005
Calculation
Builders FirstSource Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 12.10% | = | 100 | × | 2,749,369) | ÷ | 22,726,418) |
| Dec 31, 2021 | 8.67% | = | 100 | × | 1,725,416) | ÷ | 19,893,856) |
| Dec 31, 2020 | 3.66% | = | 100 | × | 313,537) | ÷ | 8,558,874) |
| Dec 31, 2019 | 3.05% | = | 100 | × | 221,809) | ÷ | 7,280,431) |
| Dec 31, 2018 | 2.66% | = | 100 | × | 205,191) | ÷ | 7,724,771) |
| Dec 31, 2017 | 0.55% | = | 100 | × | 38,781) | ÷ | 7,034,209) |
| Dec 31, 2016 | 2.27% | = | 100 | × | 144,341) | ÷ | 6,367,284) |
| Dec 31, 2015 | -0.64% | = | 100 | × | (22,831) | ÷ | 3,564,425) |
| Dec 31, 2014 | 1.13% | = | 100 | × | 18,150) | ÷ | 1,604,096) |
| Dec 31, 2013 | -2.87% | = | 100 | × | (42,691) | ÷ | 1,489,892) |
| Dec 31, 2012 | -5.31% | = | 100 | × | (56,856) | ÷ | 1,070,676) |
| Dec 31, 2011 | -8.34% | = | 100 | × | (64,995) | ÷ | 779,093) |
| Dec 31, 2010 | -13.64% | = | 100 | × | (95,508) | ÷ | 700,343) |
| Dec 31, 2009 | -9.12% | = | 100 | × | (61,854) | ÷ | 677,886) |
| Dec 31, 2008 | -13.48% | = | 100 | × | (139,494) | ÷ | 1,034,524) |
| Dec 31, 2007 | -1.49% | = | 100 | × | (23,752) | ÷ | 1,592,462) |
| Dec 31, 2006 | 3.08% | = | 100 | × | 68,893) | ÷ | 2,239,454) |
| Dec 31, 2005 | 2.08% | = | 100 | × | 48,628) | ÷ | 2,337,757) |
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
The net profit margin exhibits a volatile historical trajectory characterized by a period of severe contraction, a gradual recovery, and a subsequent phase of rapid margin expansion.
- Period of Contraction and Loss (2007–2013)
- Following a margin of 3.08% in 2006, a sharp decline occurred, with margins turning negative in 2007. The most significant losses were recorded in 2008 (-13.48%) and 2010 (-13.64%). This era was marked by a substantial reduction in net sales, which declined from $2.34 billion in 2005 to a low of $677.9 million in 2009, indicating severe operational distress and a lack of profitability over seven consecutive years.
- Recovery and Stabilization (2014–2020)
- A transition toward profitability began in 2014, although margins remained volatile through 2015. From 2016 onward, a consistent positive trend emerged, with the net profit margin increasing steadily from 2.27% in 2016 to 3.66% in 2020. This recovery was supported by a significant increase in net sales, which grew from $1.60 billion in 2014 to $8.56 billion by 2019, reflecting a stabilization of the business model.
- Accelerated Margin Expansion (2021–2022)
- The most pronounced growth occurred between 2021 and 2022. The net profit margin experienced a substantial increase, rising to 8.67% in 2021 and reaching a peak of 12.10% by the end of 2022. This expansion in profitability was driven by a massive surge in both net sales, which reached $22.73 billion, and net income, which escalated to $2.75 billion in 2022, representing a significant shift in the company's earning power.
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Comparison to Competitors
Builders FirstSource Inc., net profit margin, 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 | 12.10% | -7.41% | 11.85% | 11.86% | 0.31% | 14.00% | 8.69% | 7.75% |
| Dec 31, 2021 | 8.67% | -6.75% | 13.47% | 10.92% | -9.17% | 16.11% | 9.42% | 6.00% |
| Dec 31, 2020 | 3.66% | -20.42% | 7.68% | 7.90% | 7.81% | 14.64% | 10.45% | -6.22% |
| Dec 31, 2019 | 3.05% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 2.66% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 0.55% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 2.27% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | -0.64% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 1.13% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | -2.87% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | -5.31% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | -8.34% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | -13.64% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | -9.12% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | -13.48% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | -1.49% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 3.08% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 2.08% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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., net profit margin, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 12.10% | 5.27% |
| Dec 31, 2021 | 8.67% | 3.71% |
| Dec 31, 2020 | 3.66% | 1.85% |
| Dec 31, 2019 | 3.05% | 5.03% |
| Dec 31, 2018 | 2.66% | 2.99% |
| Dec 31, 2017 | 0.55% | 3.41% |
| Dec 31, 2016 | 2.27% | 7.61% |
| Dec 31, 2015 | -0.64% | 4.69% |
| Dec 31, 2014 | 1.13% | 9.51% |
| Dec 31, 2013 | -2.87% | 8.78% |
| Dec 31, 2012 | -5.31% | 8.73% |
| Dec 31, 2011 | -8.34% | 9.04% |
| Dec 31, 2010 | -13.64% | 7.93% |
| Dec 31, 2009 | -9.12% | 6.61% |
| Dec 31, 2008 | -13.48% | 9.45% |
| Dec 31, 2007 | -1.49% | 11.53% |
| Dec 31, 2006 | 3.08% | 10.82% |
| Dec 31, 2005 | 2.08% | 9.72% |
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., net profit margin, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 12.10% | 5.04% |
| Dec 31, 2021 | 8.67% | 5.85% |
| Dec 31, 2020 | 3.66% | 0.09% |
| Dec 31, 2019 | 3.05% | 4.11% |
| Dec 31, 2018 | 2.66% | 4.75% |
| Dec 31, 2017 | 0.55% | 5.79% |
| Dec 31, 2016 | 2.27% | 7.43% |
| Dec 31, 2015 | -0.64% | 6.48% |
| Dec 31, 2014 | 1.13% | 8.76% |
| Dec 31, 2013 | -2.87% | 8.23% |
| Dec 31, 2012 | -5.31% | 7.39% |
| Dec 31, 2011 | -8.34% | 8.26% |
| Dec 31, 2010 | -13.64% | 7.48% |
| Dec 31, 2009 | -9.12% | 5.76% |
| Dec 31, 2008 | -13.48% | 7.27% |
| Dec 31, 2007 | -1.49% | 9.56% |
| Dec 31, 2006 | 3.08% | 14.87% |
| Dec 31, 2005 | 2.08% | 3.55% |
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).