Return on Assets (ROA)
since 2005
Calculation
Builders FirstSource Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 25.95% | = | 100 | × | 2,749,369) | ÷ | 10,595,160) |
| Dec 31, 2021 | 16.10% | = | 100 | × | 1,725,416) | ÷ | 10,714,343) |
| Dec 31, 2020 | 7.51% | = | 100 | × | 313,537) | ÷ | 4,173,671) |
| Dec 31, 2019 | 6.83% | = | 100 | × | 221,809) | ÷ | 3,249,490) |
| Dec 31, 2018 | 7.00% | = | 100 | × | 205,191) | ÷ | 2,932,309) |
| Dec 31, 2017 | 1.29% | = | 100 | × | 38,781) | ÷ | 3,006,124) |
| Dec 31, 2016 | 4.96% | = | 100 | × | 144,341) | ÷ | 2,909,887) |
| Dec 31, 2015 | -0.79% | = | 100 | × | (22,831) | ÷ | 2,882,038) |
| Dec 31, 2014 | 3.11% | = | 100 | × | 18,150) | ÷ | 583,065) |
| Dec 31, 2013 | -8.28% | = | 100 | × | (42,691) | ÷ | 515,839) |
| Dec 31, 2012 | -10.32% | = | 100 | × | (56,856) | ÷ | 550,841) |
| Dec 31, 2011 | -13.30% | = | 100 | × | (64,995) | ÷ | 488,803) |
| Dec 31, 2010 | -23.14% | = | 100 | × | (95,508) | ÷ | 412,804) |
| Dec 31, 2009 | -14.22% | = | 100 | × | (61,854) | ÷ | 434,951) |
| Dec 31, 2008 | -26.77% | = | 100 | × | (139,494) | ÷ | 521,140) |
| Dec 31, 2007 | -3.67% | = | 100 | × | (23,752) | ÷ | 647,423) |
| Dec 31, 2006 | 9.20% | = | 100 | × | 68,893) | ÷ | 748,515) |
| Dec 31, 2005 | 6.71% | = | 100 | × | 48,628) | ÷ | 724,407) |
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 financial trajectory from 2005 to 2022 is characterized by three distinct phases: an initial period of instability and significant losses, a subsequent recovery phase, and a final period of exponential growth in both asset scale and profitability.
- Period of Financial Contraction (2007–2013)
- Following a positive start in 2005 and 2006, a severe downward trend emerged in 2007. The return on assets (ROA) shifted from 9.20% in 2006 to -3.67% in 2007, reaching a nadir of -26.77% in 2008. This period was marked by consistent net losses and a shrinking asset base, which declined from 748.5 million USD in 2006 to 412.8 million USD by 2010. While ROA began a gradual ascent after 2010, it remained negative through 2013, indicating a prolonged struggle to generate profit from the existing asset base.
- Stabilization and Structural Expansion (2014–2019)
- A recovery phase began in 2014 as ROA returned to positive territory at 3.11%. A significant structural shift occurred in 2015, where total assets increased nearly fivefold, rising from 583.1 million USD to 2.88 billion USD. Despite a brief dip into negative ROA in 2015 (-0.79%), the subsequent years showed steady improvement. By 2019, ROA had stabilized at 6.83%, supported by a consistent increase in net income and a steadily growing asset base that reached 3.25 billion USD.
- Accelerated Profitability and Asset Scaling (2020–2022)
- The most recent period demonstrates an unprecedented surge in financial performance. Between 2020 and 2021, total assets expanded from 4.17 billion USD to 10.71 billion USD. Simultaneously, net income experienced a massive increase, jumping from 313.5 million USD in 2019 to 2.75 billion USD by 2022. This resulted in a rapid escalation of ROA, which climbed from 7.51% in 2020 to 16.10% in 2021, and ultimately peaked at 25.95% in 2022. This indicates a substantial increase in the efficiency of asset utilization and a significant expansion of profit margins.
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Comparison to Competitors
Builders FirstSource Inc., ROA, 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 | 25.95% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Dec 31, 2021 | 16.10% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 7.51% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 6.83% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 7.00% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 1.29% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 4.96% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | -0.79% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 3.11% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | -8.28% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | -10.32% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | -13.30% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | -23.14% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | -14.22% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | -26.77% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | -3.67% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 9.20% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 6.71% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 25.95% | 2.84% |
| Dec 31, 2021 | 16.10% | 1.86% |
| Dec 31, 2020 | 7.51% | 0.80% |
| Dec 31, 2019 | 6.83% | 2.72% |
| Dec 31, 2018 | 7.00% | 1.74% |
| Dec 31, 2017 | 1.29% | 1.83% |
| Dec 31, 2016 | 4.96% | 4.09% |
| Dec 31, 2015 | -0.79% | 2.17% |
| Dec 31, 2014 | 3.11% | 3.87% |
| Dec 31, 2013 | -8.28% | 3.45% |
| Dec 31, 2012 | -10.32% | 3.30% |
| Dec 31, 2011 | -13.30% | 3.30% |
| Dec 31, 2010 | -23.14% | 2.70% |
| Dec 31, 2009 | -14.22% | 2.16% |
| Dec 31, 2008 | -26.77% | 3.33% |
| Dec 31, 2007 | -3.67% | 3.89% |
| Dec 31, 2006 | 9.20% | 3.91% |
| Dec 31, 2005 | 6.71% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 25.95% | 3.31% |
| Dec 31, 2021 | 16.10% | 3.40% |
| Dec 31, 2020 | 7.51% | 0.04% |
| Dec 31, 2019 | 6.83% | 2.56% |
| Dec 31, 2018 | 7.00% | 3.16% |
| Dec 31, 2017 | 1.29% | 3.59% |
| Dec 31, 2016 | 4.96% | 4.55% |
| Dec 31, 2015 | -0.79% | 3.52% |
| Dec 31, 2014 | 3.11% | 4.31% |
| Dec 31, 2013 | -8.28% | 3.91% |
| Dec 31, 2012 | -10.32% | 3.38% |
| Dec 31, 2011 | -13.30% | 3.69% |
| Dec 31, 2010 | -23.14% | 3.03% |
| Dec 31, 2009 | -14.22% | 2.24% |
| Dec 31, 2008 | -26.77% | 3.10% |
| Dec 31, 2007 | -3.67% | 3.87% |
| Dec 31, 2006 | 9.20% | 6.41% |
| Dec 31, 2005 | 6.71% | 1.42% |
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).