Builders FirstSource Inc. (NYSE:BLDR)

Total Asset Turnover

The reported total asset turnover ratio exhibits a declining trend from 2.63 in 2018 to a low of 1.86 in 2021, followed by a slight recovery to 2.14 in 2022. The adjusted total asset turnover mirrors this pattern closely, indicating consistent asset utilization efficiency adjustments over the years.

Current Ratio

The reported current ratio declines from 1.88 in 2018 to 1.59 in 2019, then increases to 2.07 in 2020 before decreasing again and stabilizing around 1.9 in 2022. The adjusted values follow the reported ones closely, suggesting overall moderate liquidity stability with some fluctuations.

Debt to Equity Ratio

There is a significant reduction in the reported debt to equity ratio from 2.62 in 2018 to 0.6 in 2022, indicating a substantial decrease in financial leverage and reliance on equity financing over the period. The adjusted ratios show a consistent but slightly higher debt level relative to equity, confirming deleveraging trends.

Debt to Capital Ratio

The reported debt to capital ratio decreases steadily from 0.72 in 2018 to 0.38 in 2022, reflecting a stronger capital structure with less dependency on debt financing. Adjusted figures track closely but indicate marginally higher leverage.

Financial Leverage

Financial leverage shows a considerable decline from 4.92 in 2018 to 2.14 in 2022 on a reported basis. Adjusted figures demonstrate a similar pattern, signifying a consistent reduction in the use of debt relative to equity and a cautious capital management approach.

Net Profit Margin

The net profit margin displays a marked upward trajectory, rising from 2.66% in 2018 to 12.1% in 2022. This sharp increase, particularly from 2020 onwards, underscores improving profitability and operational efficiency. Adjusted margins confirm this positive trend with slightly higher values.

Return on Equity (ROE)

Reported ROE fluctuates but ultimately increases from 34.41% in 2018 to a notably high 55.4% in 2022, signaling enhanced shareholder value creation. The adjusted ROE values, though somewhat lower, reveal the same significant upward trend.

Return on Assets (ROA)

The return on assets increases from 7.0% in 2018 to 25.95% in 2022, indicating improved overall asset profitability. Adjusted ROA follows a comparable pattern, further substantiating the efficiency gains in asset utilization and profit generation.

The financial data indicates significant growth in net sales over the analyzed period. Net sales increased steadily from approximately $7.7 billion in 2018 to around $8.6 billion in 2020, followed by a sharp rise to nearly $19.9 billion in 2021 and further growth to about $22.7 billion in 2022. This growth suggests substantial expansion in the company’s revenue-generating activities, particularly after 2020.

Total assets also demonstrated a marked upward trend, increasing from roughly $2.9 billion in 2018 to over $4.1 billion in 2020, and then rising sharply to above $10.7 billion in 2021. There was a slight decrease in 2022 to approximately $10.6 billion. This pattern reflects major asset growth likely related to expansion or acquisitions, with a stabilization or minor reduction in assets following the peak in 2021.

The reported total asset turnover ratio has shown a gradual decline from 2.63 in 2018 to 1.86 in 2021, indicating that asset efficiency in generating net sales decreased during this period. However, in 2022, the ratio rebounded slightly to 2.14, suggesting an improvement in how effectively the company utilized its assets to generate sales after the previous downward trend.

The adjusted total assets largely mirror the trend of reported total assets, increasing substantially through 2021 with a mild decrease in 2022. Correspondingly, the adjusted total asset turnover ratio follows a similar declining trend from 2.42 in 2018 to 1.85 in 2021, with a recovery to 2.13 in 2022. This consistency between reported and adjusted figures reinforces the observed patterns in asset use efficiency.

Overall, the data reflects a company experiencing rapid growth in sales and asset base, particularly between 2020 and 2021, with asset turnover efficiency initially declining but showing signs of recovery in the latest year. This suggests potential operational scaling challenges during expansion, followed by improved asset utilization efficiency in 2022.

Net Sales

Increased steadily from 2018 to 2020, then surged significantly in 2021 and 2022.

Total Assets

Grew gradually until 2020, followed by a sharp increase in 2021 and a slight decrease in 2022.

Reported Total Asset Turnover

Declined from 2018 through 2021, then improved notably in 2022.

Adjusted Total Assets

Followed the same growth and slight decline pattern as reported total assets.

Adjusted Total Asset Turnover

Mirrored the decline and recovery trend seen in reported asset turnover ratios.

The financial data reveals several notable trends in liquidity over the five-year period ending December 31, 2022. Both current assets and current liabilities have increased significantly, with current assets growing from approximately $1.37 billion in 2018 to nearly $3.50 billion by 2022, and current liabilities rising from about $731 million to $1.84 billion in the same period. This indicates an overall expansion in the scale of short-term operations and commitments.

The reported current ratio fluctuates across the years, starting at 1.88 in 2018, dipping to 1.59 in 2019, then recovering above 2.0 in 2020 before slightly decreasing again to 1.86 in 2021 and ending at 1.90 in 2022. These movements suggest periods of varying liquidity strength, with the ratio generally maintaining levels above 1.5, which indicates an adequate margin to cover current liabilities with current assets in most years.

When adjustments are made to current assets (details of which are unspecified), the adjusted current assets and adjusted current ratio figures closely mirror the reported values but trend slightly higher. The adjusted current assets increase in a pattern similar to the unadjusted figure, while the adjusted current ratio ranges between 1.60 and 2.07 over the period, consistently aligning closely with the reported current ratio.

Overall, the company demonstrates a capacity to maintain liquidity at a comfortable level relative to its current liabilities, with an increasing asset base that supports short-term obligations. The slight dips in the current ratios in 2019 and 2021 might suggest periods of growing liabilities outpacing asset increases, but the ratios remain above industry minimum standards, indicating continued short-term financial stability.

Debt Levels

The total debt exhibited fluctuations over the analyzed period. It decreased from approximately $1.56 billion in 2018 to around $1.29 billion in 2019, followed by a rise to about $1.62 billion in 2020. Subsequently, there was a sharp increase reaching nearly $2.93 billion in 2021, and it remained relatively stable with a slight increase to approximately $2.98 billion in 2022. Adjusted total debt followed a similar pattern, starting at roughly $1.83 billion in 2018, declining in 2019, then increasing notably in 2021 and 2022 to over $3.4 billion and $3.49 billion respectively.

Equity Trends

Stockholders’ equity showed continuous growth through 2020, increasing from about $596 million in 2018 to roughly $1.15 billion in 2020. However, in 2021, equity surged sharply to approximately $4.8 billion, maintaining a similar elevated level in 2022 with around $4.96 billion. Adjusted stockholders’ equity mirrored this trajectory, showing a significant jump in 2021 and sustained growth in 2022 to over $5.2 billion.

Leverage Ratios

The reported debt to equity ratio indicates a declining leverage over time. Beginning at 2.62 in 2018, the ratio decreased consistently to 1.57 in 2019 and further down to 1.41 in 2020. By 2021, there was a marked decrease to 0.61, remaining stable at 0.60 in 2022. This suggests a substantial reduction in reliance on debt relative to equity during these years. The adjusted debt to equity ratio follows a comparable trend, starting higher at 3.16 in 2018, then declining through 2020 to 1.58, and dropping sharply to 0.66 in both 2021 and 2022.

Overall Insights

The data reveals an overall strategy of strengthening equity relative to debt, particularly evident after 2020. Despite the total and adjusted debt levels rising sharply in 2021 and 2022, the substantially higher increase in stockholders’ equity resulted in much lower leverage ratios. This indicates a substantial capital infusion or retention of earnings, improving the company’s financial stability and capacity to service debt. The stabilization of leverage ratios in the last two years suggests a new equilibrium point in the company's capital structure.

Total Debt

The total debt exhibited fluctuation over the examined periods, beginning at $1,561,294 thousand at the end of 2018 and decreasing to $1,291,273 thousand by the end of 2019. It then increased substantially to $1,624,240 thousand in 2020 and nearly doubled in 2021 to reach $2,929,782 thousand, with a slight rise to $2,984,197 thousand in 2022.

Total Capital

Total capital showed an overall significant increasing trend, starting from $2,157,632 thousand in 2018 and slightly decreasing to $2,116,226 thousand in 2019. A considerable increase followed in 2020 with $2,777,023 thousand, which then surged in 2021 to $7,732,263 thousand and further increased marginally to $7,946,763 thousand in 2022.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreased consistently from 0.72 in 2018 to 0.38 in 2021 and remained stable at 0.38 in 2022. This indicates a decreasing proportion of debt relative to capital, reflecting a potentially stronger equity position or expanded capital base over time.

Adjusted Total Debt

Adjusted total debt followed a trend similar to total debt, starting higher at $1,834,584 thousand in 2018 than reported total debt. It declined in 2019 to $1,589,874 thousand, then increased to $1,905,104 thousand by 2020. A marked increase occurred in 2021 to $3,401,751 thousand, which further rose slightly to $3,489,418 thousand in 2022.

Adjusted Total Capital

Adjusted total capital increased steadily each year from $2,414,351 thousand in 2018 to $8,588,114 thousand in 2021, with a minor increase to $8,772,027 thousand in 2022. This pattern demonstrates a strong upward trajectory in overall capital when adjustments are considered.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 0.76 in 2018 to 0.40 in 2021, maintaining the 0.40 level in 2022. This decline mirrors the trend seen in the reported debt to capital ratio, indicating a reduction in the relative debt burden when adjusted measures are used.

Overall, the financial data indicates a substantial growth in capital, both reported and adjusted, especially from 2020 onwards. Despite the increase in absolute debt levels, the debt-to-capital ratios show a significant improvement, suggesting an enhanced capital structure with comparatively lower financial leverage. The stability of these ratios in the most recent year points to a steady state in the company's financing strategy.

Total Assets

Total assets exhibited a consistent upward trend from 2018 through 2021, increasing from approximately $2.93 billion to over $10.7 billion. However, in 2022, total assets slightly decreased to about $10.6 billion, indicating a stabilization after a steep growth phase.

Stockholders’ Equity

Stockholders’ equity demonstrated significant growth throughout the period, rising from roughly $596 million in 2018 to nearly $4.8 billion in 2021, with a marginal increase to $4.96 billion in 2022. The increase was particularly pronounced between 2020 and 2021, where equity more than quadrupled.

Reported Financial Leverage

The reported financial leverage ratio, calculated as total assets divided by stockholders’ equity, steadily declined from 4.92 in 2018 to 2.14 in 2022. This suggests a gradual reduction in reliance on debt relative to equity over time, indicating strengthening equity positions and potentially reduced financial risk.

Adjusted Total Assets

Adjusted total assets largely mirrored the trend in reported total assets, increasing significantly from 2018 to 2021 followed by a slight decrease in 2022. The values remained marginally higher than reported total assets, reflecting adjustments applied to asset valuations.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity rose consistently, showing a sharp increase between 2020 and 2021, similar to reported equity. The adjustment resulted in values somewhat higher than the reported equity, indicating revaluation or recognition of additional equity components during the period.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 5.5 in 2018 to 2.02 in 2022, following a trajectory comparable to the reported leverage ratio but starting from a higher base. The consistent reduction underscores an overall improvement in the capital structure, with equity growing faster than assets or debt obligations.

Net Income

There was a steady increase in net income from 2018 through 2020, followed by a substantial surge in 2021 and 2022. The net income grew from approximately 205 million USD in 2018 to nearly 2.75 billion USD in 2022, indicating significant profitability growth, especially in the last two years.

Net Sales

Net sales experienced a decline from 2018 to 2019, dropping from about 7.72 billion USD to 7.28 billion USD. This was followed by a recovery and a steady increase in 2020. Sales then more than doubled in 2021, reaching nearly 19.9 billion USD, and continued to rise in 2022 to over 22.7 billion USD, demonstrating robust revenue growth and expansion.

Reported Net Profit Margin

The reported net profit margin increased consistently over the period. Starting at 2.66% in 2018, it rose modestly in the following years and then experienced a significant jump in 2021, reaching 8.67%, and further increasing to 12.1% in 2022. This indicates improved efficiency and profitability relative to sales.

Adjusted Net Income

Adjusted net income followed a similar trend to net income, increasing steadily from 2018 to 2020, and then showing a marked increase in 2021 and 2022. The adjustments did not materially alter the growth pattern, underscoring strong underlying earnings before exceptional items or one-time charges.

Adjusted Net Profit Margin

The adjusted net profit margin showed a pattern similar to the reported margin, with gradual growth from 2018 through 2020, followed by a sharp rise in 2021 and 2022. It moved from 3.34% in 2018 to nearly 11.82% in 2022, reinforcing the company's improved profitability on an adjusted basis.

The financial data reveals notable trends in profitability and equity over the examined five-year period.

Net Income

Net income showed a steady increase from 2018 to 2020, rising from approximately $205 million to $314 million. A significant surge occurred in 2021, with net income exceeding $1.7 billion, followed by a further increase in 2022 to nearly $2.75 billion.

Stockholders’ Equity

Stockholders’ equity increased consistently from 2018 through 2020, moving from roughly $596 million to $1.15 billion. A pronounced escalation was observed in 2021, where equity jumped to approximately $4.8 billion, with a slight increase to about $4.96 billion in 2022.

Reported Return on Equity (ROE)

Reported ROE declined somewhat from 2018 to 2019 (34.41% to 26.89%) and stabilized around 27.2% in 2020. It improved markedly in 2021 to 35.93%, followed by a substantial increase in 2022 reaching 55.4%, indicating enhanced profitability relative to equity.

Adjusted Net Income

The pattern for adjusted net income closely mirrors that of reported net income, beginning at $258 million in 2018 and experiencing steady growth until 2020. Thereafter, a sharp rise occurred in 2021 to approximately $1.71 billion, with a marginal decline to about $2.69 billion in 2022.

Adjusted Stockholders’ Equity

Adjusted equity mirrored the trend of reported equity, increasing from around $580 million in 2018 to $1.2 billion by 2020. It then surged to over $5.18 billion in 2021, with a modest rise to roughly $5.28 billion in 2022.

Adjusted Return on Equity

Adjusted ROE decreased from a high of 44.54% in 2018 to 27.42% in 2020, before rising again to 32.91% in 2021. The most recent year saw a significant jump to 50.84%, suggesting improved return efficiency once adjustments are considered.

Overall, the data shows considerable growth in both net income and stockholders’ equity, particularly pronounced in 2021. Correspondingly, both reported and adjusted ROEs exhibit variability but trend upward in the most recent years, indicating enhanced profitability relative to equity investment. This suggests effective utilization of equity to generate shareholder returns, especially from 2021 onwards.

Net Income

The net income has demonstrated consistent growth over the five-year period. It increased from approximately 205 million US dollars at the end of 2018 to nearly 2.75 billion US dollars by the end of 2022. The most notable acceleration occurred between 2020 and 2021, where net income surged substantially, followed by continued strong growth into 2022.

Total Assets

Total assets have also increased markedly from approximately 2.93 billion US dollars in 2018 to around 10.6 billion US dollars by the end of 2022. A significant leap is observable between 2020 and 2021, where total assets more than doubled, followed by a slight decrease or stabilization from 2021 to 2022.

Reported Return on Assets (ROA)

The reported ROA showed moderate stability between 2018 and 2020, fluctuating marginally between about 6.8% and 7.5%. However, from 2020 onwards, there was a marked improvement, soaring to over 16% in 2021 and reaching nearly 26% in 2022, indicating enhanced profitability relative to asset base during these years.

Adjusted Net Income

Adjusted net income follows a similar trajectory to the reported net income, steadily increasing from roughly 258 million US dollars in 2018 to approximately 2.69 billion US dollars by the end of 2022. The most pronounced growth occurred after 2020, peaking sharply in 2021 and maintaining elevated levels in 2022.

Adjusted Total Assets

The adjusted total assets trend aligns closely with the reported total assets, rising consistently from around 3.19 billion US dollars in 2018 to nearly 10.65 billion US dollars in 2022. The notable jump between 2020 and 2021 is similarly apparent, followed by relative stability into 2022.

Adjusted Return on Assets (ROA)

The adjusted ROA remained relatively steady from 2018 through 2020, ranging between 7.9% and 8.4%. A significant increase occurred from 2020 onward, with adjusted ROA escalating to about 15.9% in 2021 and further advancing to just over 25% in 2022. This suggests improved earnings quality and effective asset utilization in recent years.