Builders FirstSource Inc. (NYSE:BLDR)

The financial data reveals significant developments over the five-year period ending in December 2022. Each key metric shows distinct trends that highlight shifts in company performance and capital efficiency.

Net Operating Profit After Taxes (NOPAT)

NOPAT exhibits a steady upward trajectory, starting from approximately $352 million in 2018 and increasing modestly through 2020. A notable surge occurs in 2021, where NOPAT more than quadruples compared to 2020, reaching approximately $1.83 billion. This growth continues into 2022, with NOPAT rising further to nearly $2.86 billion. The substantial increases in the last two years reflect enhanced profitability and potentially improved operations or market conditions.

Invested Capital

Invested capital remains relatively stable from 2018 to 2019, with a slight increase from $2.39 billion to $2.42 billion. There is a moderate increase in 2020 to over $3.09 billion, but a dramatic escalation follows in 2021, where invested capital nearly triples to $8.51 billion. This level holds fairly steady through 2022. The sharp rise in invested capital coincides with the surge in NOPAT and suggests significant investment or acquisition activity undertaken during this period.

Return on Invested Capital (ROIC)

ROIC starts at 14.73% in 2018 and remains relatively stable through 2020, fluctuating slightly but maintaining a range between approximately 14.5% and 15.5%. In 2021, there is a marked improvement to 21.56%, indicating much greater efficiency in generating returns from the invested capital. The trend culminates in 2022 with ROIC reaching 33.44%, which points to a significant enhancement in capital utilization and profitability.

In summary, there is a clear pattern of increasing profitability measured by NOPAT, accompanied by substantial growth in invested capital starting in 2021. Despite the large capital investment, the company has improved its return on invested capital markedly, demonstrating effective deployment of resources and strong financial performance improvements in the recent years observed.

The financial data reveals several noteworthy trends over the five-year period ending in 2022. Operating profit margin exhibited a consistent upward trajectory, increasing from 4.94% in 2018 to 16.84% in 2022. This suggests an improvement in profitability and operational efficiency.

Turnover of capital showed a downward shift initially, decreasing from 3.23 in 2018 to 2.34 in 2021, before rebounding to 2.65 in 2022. The initial decline may indicate slower asset utilization, but the recovery hints at a partial restoration of asset efficiency in the most recent year.

The metric "1 – Effective cash tax rate" experienced a steady decline from 92.45% in 2018 to 74.85% in 2022. This indicates an increasing proportion of taxes being effectively paid relative to earnings, or potentially fewer tax credits and deferrals over time.

Return on invested capital showed an overall positive trend, rising from 14.73% in 2018 to 33.44% in 2022. The increase is particularly pronounced from 2020 onwards, reflecting improving returns on the company’s investment base and enhanced value creation.

In summary, the data reflects gains in profitability and capital returns, despite some fluctuations in capital efficiency. The decline in the adjusted effective tax rate component may also be impacting net return metrics, contributing to the observed ROIC improvements.

Net operating profit before taxes (NOPBT)

The net operating profit before taxes demonstrated a consistent upward trend throughout the period. Starting at approximately $381 million in 2018, it increased moderately in 2019 and 2020. A significant surge was observed in 2021, where NOPBT more than quadrupled compared to the previous year, reaching about $2.43 billion. This growth continued in 2022, rising further to approximately $3.83 billion. Such an increase indicates improved profitability and operational efficiency over the years.

Net sales

Net sales exhibited both fluctuations and strong growth during the analyzed period. The sales decreased slightly from about $7.72 billion in 2018 to approximately $7.28 billion in 2019. However, there was a recovery and steady increase starting in 2020, with sales reaching about $8.56 billion. A profound acceleration occurred in 2021, nearly doubling previous sales figures to around $19.89 billion, and continued growing to approximately $22.73 billion in 2022. This pattern suggests expanding market demand or increased sales capacity during the last two years.

Operating profit margin (OPM)

The operating profit margin showed continuous improvement over the five years. Beginning at a modest 4.94% in 2018, it rose gradually to 5.66% in 2019 and 6.56% in 2020. In 2021, the margin reached 12.21%, more than doubling from the previous year, and further increased to a robust 16.84% by the end of 2022. This consistent enhancement in margin reflects better cost management and operational leverage as sales expanded sharply.

Summary

Throughout the five-year span, all key financial metrics—net operating profit before taxes, net sales, and operating profit margin—showed positive trends, with especially pronounced growth from 2020 onwards. The data reveal a transition to greater scale and profitability, underscored by efficient operations. The substantial rise in sales coupled with margin improvement suggests successful strategic initiatives enabling stronger earnings and value generation.

The annual financial data reveals notable trends in the company's sales performance, invested capital, and capital turnover over a five-year period.

Net Sales

Net sales exhibited fluctuations followed by strong growth. Initially, there was a decline from approximately 7.7 billion US dollars at the end of 2018 to about 7.3 billion in 2019. This was succeeded by an increase in 2020 to around 8.6 billion US dollars. A significant surge occurred from 2020 to 2021, where net sales more than doubled to nearly 20 billion US dollars, continuing to rise further to roughly 22.7 billion US dollars in 2022. This pattern indicates a substantial expansion in sales activities during the last two years.

Invested Capital

Invested capital remained relatively stable between 2018 and 2019, with slight growth from 2.39 billion to 2.42 billion US dollars. In 2020, invested capital increased significantly to approximately 3.1 billion US dollars. This upward trend accelerated sharply in 2021, with the invested capital nearly tripling to about 8.5 billion US dollars, and remaining relatively stable in 2022 at approximately 8.57 billion US dollars. These figures suggest a considerable increase in resource commitment aligned with the expansion strategy during this period.

Turnover of Capital (TO)

Turnover of capital showed a consistent downward trend from 2018 through 2021. It decreased from 3.23 in 2018 to 3.01 in 2019, then further declined to 2.77 in 2020, followed by a more pronounced drop to 2.34 in 2021. However, the ratio improved in 2022, rising to 2.65. The initial decline indicates that despite the increase in net sales, the invested capital grew at a faster rate, leading to less efficient capital use in those years. The rebound in 2022 may signify improved capital efficiency or better utilization of invested resources relative to sales.

The financial data reveals a pronounced upward trend across several key operating metrics over the five-year period ending in 2022.

Cash Operating Taxes

The cash operating taxes paid show a substantial increase, rising from approximately $28.8 million in 2018 to over $962.5 million by 2022. This signifies a more than 33-fold escalation. The increment is particularly sharp between 2020 and 2021, where the amount jumped from about $110.2 million to nearly $594.5 million, indicating a significant growth in taxable income or higher tax liabilities.

Net Operating Profit Before Taxes (NOPBT)

NOPBT exhibits consistent growth throughout the period, increasing from roughly $381.3 million in 2018 to approximately $3.83 billion in 2022. This represents more than a tenfold increase, with an especially notable surge between 2020 and 2021, where profit magnified from $561.4 million to $2.43 billion. The figures suggest scaling operational performance and profitability expansion during the time frame.

Effective Cash Tax Rate (CTR)

The effective cash tax rate also demonstrates an upward trajectory, rising steadily from 7.55% in 2018 to 25.15% in 2022. The increase is gradual but marked, nearly tripling over five years. The sharpest relative increase occurs from 2019 to 2020, jumping from 9.01% to 19.63%, implying changes in tax strategy, tax law impacts, or a shift in the composition of taxable earnings.

Overall, the data reflect strong financial growth with increasing profits accompanied by proportionate rises in cash taxes paid and a higher effective tax rate. This trend suggests the company has expanded its taxable earnings base significantly and is experiencing a rising tax burden in alignment with profitability gains.