Operating Profit Margin
since 2005
Calculation
Builders FirstSource Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 16.59% | = | 100 | × | 3,770,206) | ÷ | 22,726,418) |
| Dec 31, 2021 | 12.00% | = | 100 | × | 2,387,424) | ÷ | 19,893,856) |
| Dec 31, 2020 | 6.35% | = | 100 | × | 543,854) | ÷ | 8,558,874) |
| Dec 31, 2019 | 5.39% | = | 100 | × | 392,306) | ÷ | 7,280,431) |
| Dec 31, 2018 | 4.78% | = | 100 | × | 368,968) | ÷ | 7,724,771) |
| Dec 31, 2017 | 4.05% | = | 100 | × | 285,103) | ÷ | 7,034,209) |
| Dec 31, 2016 | 3.71% | = | 100 | × | 236,336) | ÷ | 6,367,284) |
| Dec 31, 2015 | 2.54% | = | 100 | × | 90,617) | ÷ | 3,564,425) |
| Dec 31, 2014 | 3.12% | = | 100 | × | 50,018) | ÷ | 1,604,096) |
| Dec 31, 2013 | 3.22% | = | 100 | × | 48,042) | ÷ | 1,489,892) |
| Dec 31, 2012 | -0.81% | = | 100 | × | (8,703) | ÷ | 1,070,676) |
| Dec 31, 2011 | -4.81% | = | 100 | × | (37,475) | ÷ | 779,093) |
| Dec 31, 2010 | -9.10% | = | 100 | × | (63,733) | ÷ | 700,343) |
| Dec 31, 2009 | -8.95% | = | 100 | × | (60,667) | ÷ | 677,886) |
| Dec 31, 2008 | -12.08% | = | 100 | × | (124,996) | ÷ | 1,034,524) |
| Dec 31, 2007 | -0.81% | = | 100 | × | (12,875) | ÷ | 1,592,462) |
| Dec 31, 2006 | 6.24% | = | 100 | × | 139,848) | ÷ | 2,239,454) |
| Dec 31, 2005 | 5.35% | = | 100 | × | 125,172) | ÷ | 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 operating profit margin exhibited three distinct phases over the analyzed period: a period of severe contraction, a phase of gradual recovery and stabilization, and a final stage of accelerated expansion. The overall trajectory transitioned from early stability to a multi-year period of operating losses, eventually culminating in record-high profitability margins by 2022.
- Period of Financial Contraction (2007–2012)
- A significant downturn is observed beginning in 2007, as the operating profit margin shifted from a positive 6.24% in 2006 to -0.81%. The decline peaked in 2008, with the margin reaching a period low of -12.08%. This phase was characterized by a sharp reduction in net sales, which dropped from $2.24 billion in 2006 to $677.9 million by 2009. Despite a slow upward trend in sales through 2012, operating margins remained negative throughout this six-year interval.
- Recovery and Stabilization (2013–2019)
- Profitability was restored in 2013, with the operating profit margin returning to a positive 3.22%. Between 2013 and 2019, the margin demonstrated steady, incremental growth, ending the period at 5.39%. This recovery was supported by a consistent expansion in net sales, which grew from $1.49 billion in 2013 to $7.28 billion in 2019, indicating a successful restoration of operational scale and efficiency.
- Accelerated Margin Expansion (2020–2022)
- A period of rapid margin growth is observed starting in 2020. The operating profit margin increased from 6.35% in 2020 to 12.00% in 2021, and further climbed to 16.59% by 2022. This expansion was driven by a disproportionate increase in income from operations compared to net sales; while sales grew from $8.56 billion in 2019 to $22.73 billion in 2022, operating income grew more aggressively from $392.3 million to $3.77 billion over the same period.
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Comparison to Competitors
Builders FirstSource Inc., operating profit margin, long-term trends, comparison to competitors
| Builders FirstSource Inc. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 16.59% | -5.33% | 13.97% | 12.65% | 8.07% |
| Dec 31, 2021 | 12.00% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 6.35% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 5.39% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 4.78% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 4.05% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 3.71% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 2.54% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 3.12% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 3.22% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | -0.81% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | -4.81% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | -9.10% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | -8.95% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | -12.08% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | -0.81% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 6.24% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 5.35% | 5.13% | 11.13% | 8.02% | 12.26% |
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).