Return on Equity (ROE)
since 2005
Calculation
Builders FirstSource Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 55.40% | = | 100 | × | 2,749,369) | ÷ | 4,962,566) |
| Dec 31, 2021 | 35.93% | = | 100 | × | 1,725,416) | ÷ | 4,802,481) |
| Dec 31, 2020 | 27.20% | = | 100 | × | 313,537) | ÷ | 1,152,783) |
| Dec 31, 2019 | 26.89% | = | 100 | × | 221,809) | ÷ | 824,953) |
| Dec 31, 2018 | 34.41% | = | 100 | × | 205,191) | ÷ | 596,338) |
| Dec 31, 2017 | 10.31% | = | 100 | × | 38,781) | ÷ | 376,209) |
| Dec 31, 2016 | 46.62% | = | 100 | × | 144,341) | ÷ | 309,620) |
| Dec 31, 2015 | -15.30% | = | 100 | × | (22,831) | ÷ | 149,195) |
| Dec 31, 2014 | 45.15% | = | 100 | × | 18,150) | ÷ | 40,200) |
| Dec 31, 2013 | -277.79% | = | 100 | × | (42,691) | ÷ | 15,368) |
| Dec 31, 2012 | -118.21% | = | 100 | × | (56,856) | ÷ | 48,096) |
| Dec 31, 2011 | -64.21% | = | 100 | × | (64,995) | ÷ | 101,224) |
| Dec 31, 2010 | -59.88% | = | 100 | × | (95,508) | ÷ | 159,505) |
| Dec 31, 2009 | -131.75% | = | 100 | × | (61,854) | ÷ | 46,947) |
| Dec 31, 2008 | -136.13% | = | 100 | × | (139,494) | ÷ | 102,474) |
| Dec 31, 2007 | -9.83% | = | 100 | × | (23,752) | ÷ | 241,547) |
| Dec 31, 2006 | 26.82% | = | 100 | × | 68,893) | ÷ | 256,864) |
| Dec 31, 2005 | 28.41% | = | 100 | × | 48,628) | ÷ | 171,135) |
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: initial stability, a prolonged period of extreme volatility and negative returns, and a recent era of aggressive growth and profitability. The Return on Equity (ROE) exhibits high variance, reflecting significant shifts in both net income and the underlying equity base.
- Crisis and Contraction Period (2007–2013)
- A severe downturn began in 2007, with net income shifting from positive to negative and remaining in deficit for seven consecutive years. This period was marked by extreme negative ROE, which reached a nadir of -277.79% in 2013. The collapse in ROE was driven by a combination of sustained net losses and a critical erosion of stockholders' equity, which declined from US$241.55 million in 2007 to a low of US$15.37 million in 2013.
- Transitional Volatility (2014–2015)
- A period of instability followed the initial crisis, characterized by fluctuating returns. In 2014, a brief return to profitability resulted in an ROE of 45.15%. However, this was short-lived, as the company returned to a net loss in 2015, bringing the ROE back to -15.30%.
- Sustained Expansion and Profitability (2016–2022)
- From 2016 onward, a consistent upward trend in financial performance is observed. Net income experienced exponential growth, rising from US$144.34 million in 2016 to US$2.75 billion in 2022. Stockholders' equity also expanded significantly, particularly between 2020 and 2021, where it increased from US$1.15 billion to US$4.80 billion. While ROE remained relatively stable between 26.89% and 35.93% from 2017 to 2021, it accelerated to 55.40% in 2022, indicating a substantial increase in the efficiency of generating profits from shareholder investments.
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Comparison to Competitors
Builders FirstSource Inc., ROE, 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 | 55.40% | — | 42.25% | 14.45% | 0.62% | 29.74% | 61.86% | 7.16% |
| Dec 31, 2021 | 35.93% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Dec 31, 2020 | 27.20% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Dec 31, 2019 | 26.89% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 34.41% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 10.31% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 46.62% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | -15.30% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 45.15% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | -277.79% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | -118.21% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | -64.21% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | -59.88% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | -131.75% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | -136.13% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | -9.83% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | 26.82% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 28.41% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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., ROE, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 55.40% | 13.39% |
| Dec 31, 2021 | 35.93% | 8.48% |
| Dec 31, 2020 | 27.20% | 4.42% |
| Dec 31, 2019 | 26.89% | 18.11% |
| Dec 31, 2018 | 34.41% | 11.28% |
| Dec 31, 2017 | 10.31% | 10.13% |
| Dec 31, 2016 | 46.62% | 20.08% |
| Dec 31, 2015 | -15.30% | 10.42% |
| Dec 31, 2014 | 45.15% | 18.16% |
| Dec 31, 2013 | -277.79% | 15.14% |
| Dec 31, 2012 | -118.21% | 17.58% |
| Dec 31, 2011 | -64.21% | 19.63% |
| Dec 31, 2010 | -59.88% | 15.88% |
| Dec 31, 2009 | -131.75% | 13.47% |
| Dec 31, 2008 | -136.13% | 24.97% |
| Dec 31, 2007 | -9.83% | 22.64% |
| Dec 31, 2006 | 26.82% | 22.16% |
| Dec 31, 2005 | 28.41% | 17.27% |
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., ROE, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 55.40% | 15.38% |
| Dec 31, 2021 | 35.93% | 15.38% |
| Dec 31, 2020 | 27.20% | 0.24% |
| Dec 31, 2019 | 26.89% | 14.56% |
| Dec 31, 2018 | 34.41% | 17.95% |
| Dec 31, 2017 | 10.31% | 18.24% |
| Dec 31, 2016 | 46.62% | 21.69% |
| Dec 31, 2015 | -15.30% | 16.11% |
| Dec 31, 2014 | 45.15% | 19.68% |
| Dec 31, 2013 | -277.79% | 16.40% |
| Dec 31, 2012 | -118.21% | 17.20% |
| Dec 31, 2011 | -64.21% | 20.10% |
| Dec 31, 2010 | -59.88% | 16.41% |
| Dec 31, 2009 | -131.75% | 12.84% |
| Dec 31, 2008 | -136.13% | 20.74% |
| Dec 31, 2007 | -9.83% | 20.36% |
| Dec 31, 2006 | 26.82% | 32.16% |
| Dec 31, 2005 | 28.41% | 7.80% |
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).