Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Builders FirstSource Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed a declining trend from March 2019 (11.44) through December 2019 (10.09) and remained fairly stable around 10 in 2020, before a notable drop occurred in March 2021 (8.43). Subsequently, a strong upward trend took place through the rest of 2021, peaking in March 2022 (15.44). However, starting mid-2022, this ratio trended downward consistently, reaching 9.81 by September 2023. This pattern suggests fluctuations in the efficiency of fixed asset utilization, with a peak efficiency during early 2022 followed by a gradual decline.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- This broader measure of fixed asset turnover mirrors the general pattern of the traditional ratio but at lower absolute levels. It declined slightly from March 2019 (8.16) to December 2019 (7.18), remained steady through 2020, and dropped further at the start of 2021 (6.29). A recovery phase was seen through 2021 and early 2022, reaching a high of 11.68 in March 2022 before trending downwards steadily to 7.68 in September 2023. The inclusion of operating leases reduces efficiency ratios, but the trend supports observations of asset utilization variation over time.
- Total Asset Turnover
- The total asset turnover ratio exhibited a gradual decline from 2.39 in March 2019 to a low of 1.94 in September 2020, indicating decreasing overall asset efficiency. During 2021, the ratio improved from 1.17 in March to 1.86 in December, suggesting better asset utilization. In 2022, the ratio fluctuated between 1.78 and 2.14, peaking mid-year, followed by a decline in 2023 to 1.61 in September. This reflects moderate volatility with no sustained upward or downward long-term trend but rather cyclical improvements and setbacks.
- Equity Turnover
- The equity turnover ratio declined substantially from March 2019 (12.1) through December 2020 (7.42), indicating a reduction in sales generated per unit of equity. A sharp drop occurred in March 2021 (2.2), followed by a recovery trend throughout that year, reaching 4.14 by December 2021. In 2022, the ratio remained relatively stable, fluctuating slightly around 4.4, but began declining again in 2023, decreasing to 3.78 by September. Overall, the equity turnover indicates significant variability with reduced efficiency compared to the earlier periods and some stabilization after a steep decline at the start of 2021.
Net Fixed Asset Turnover
Builders FirstSource Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 4,534,264) | 4,528,890) | 3,883,314) | 4,357,565) | 5,761,463) | 6,926,259) | 5,681,131) | 4,634,809) | 5,508,590) | 5,576,682) | 4,173,775) | 2,530,760) | 2,295,450) | 1,945,643) | 1,787,021) | 1,763,573) | 1,981,035) | 1,904,523) | 1,631,300) | ||||||
| Property, plant and equipment, net | 1,763,153) | 1,676,244) | 1,605,575) | 1,567,631) | 1,491,622) | 1,420,722) | 1,385,998) | 1,385,441) | 1,336,890) | 1,300,680) | 1,297,756) | 749,130) | 750,841) | 743,542) | 730,738) | 721,887) | 696,154) | 675,310) | 669,055) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 9.81 | 11.06 | 13.03 | 14.50 | 15.42 | 16.01 | 15.44 | 14.36 | 13.31 | 11.21 | 8.43 | 11.43 | 10.38 | 10.06 | 10.18 | 10.09 | 10.53 | 11.06 | 11.44 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 7.23 | 7.04 | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 5.17 | 5.10 | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 6.77 | 6.75 | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 5.50 | 5.58 | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 6.64 | 6.59 | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 8.41 | 8.46 | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 4.37 | 4.61 | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Net fixed asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Property, plant and equipment, net
= (4,534,264 + 4,528,890 + 3,883,314 + 4,357,565)
÷ 1,763,153 = 9.81
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures indicate a generally upward trend from 2019 through mid-2021, starting at approximately 1.63 billion USD in Q1 2019, peaking significantly at about 5.58 billion USD in Q2 2021. Following this peak, net sales exhibit a clear downward correction through 2022 and into early 2023, declining to around 4.53 billion USD by Q3 2023. This pattern suggests rapid growth through 2020 and early 2021, followed by a contraction or stabilization at a lower level in recent quarters.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment shows a consistent increase over the entire period from 2019 to 2023. The figures rise steadily from approximately 669 million USD in Q1 2019 to about 1.76 billion USD by Q3 2023. This demonstrates sustained investment in fixed assets, with no significant declines or downturns, indicating ongoing expansion or maintenance of the company’s operational capacity over time.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio reveals notable variations over the examined quarters. Initially, the ratio declines gradually from 11.44 in Q1 2019 to a low near 10 in 2019 and early 2020, indicating a slight decrease in sales efficiency relative to fixed assets. Then, a marked dip appears in Q1 2021 when the ratio falls to 8.43, followed by a sharp increase peaking at 16.01 in Q2 2022. After this peak, turnover gradually decreases again to 9.81 by Q3 2023. These fluctuations mirror the net sales pattern but with greater volatility. The initial drop and later peak suggest periods of fluctuating asset utilization efficiency, possibly reflecting changes in sales volume relative to the expanding asset base.
- Overall Insights
- The data reflects a phase of rapid growth in net sales through the pandemic period into early 2021, supported by steady increases in fixed assets. The subsequent decline in sales and turnover ratios hints at adjustments in the market or operational efficiency, possibly due to external factors impacting demand or business strategy shifts. Meanwhile, continuous asset growth suggests a long-term commitment to capacity expansion or modernization despite the variations in sales performance. The net fixed asset turnover ratio’s volatility underscores the company’s fluctuating ability to generate sales from its invested assets, warranting close attention for operational optimization.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Builders FirstSource Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 4,534,264) | 4,528,890) | 3,883,314) | 4,357,565) | 5,761,463) | 6,926,259) | 5,681,131) | 4,634,809) | 5,508,590) | 5,576,682) | 4,173,775) | 2,530,760) | 2,295,450) | 1,945,643) | 1,787,021) | 1,763,573) | 1,981,035) | 1,904,523) | 1,631,300) | ||||||
| Property, plant and equipment, net | 1,763,153) | 1,676,244) | 1,605,575) | 1,567,631) | 1,491,622) | 1,420,722) | 1,385,998) | 1,385,441) | 1,336,890) | 1,300,680) | 1,297,756) | 749,130) | 750,841) | 743,542) | 730,738) | 721,887) | 696,154) | 675,310) | 669,055) | ||||||
| Operating lease right-of-use assets, net | 489,462) | 483,991) | 484,710) | 485,704) | 500,031) | 483,545) | 446,876) | 457,833) | 444,073) | 429,940) | 442,440) | 274,562) | 278,075) | 286,354) | 285,964) | 292,684) | 286,971) | 273,971) | 269,640) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 2,252,615) | 2,160,235) | 2,090,285) | 2,053,335) | 1,991,653) | 1,904,267) | 1,832,874) | 1,843,274) | 1,780,963) | 1,730,620) | 1,740,196) | 1,023,692) | 1,028,916) | 1,029,896) | 1,016,702) | 1,014,571) | 983,125) | 949,281) | 938,695) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.68 | 8.58 | 10.01 | 11.07 | 11.55 | 11.95 | 11.68 | 10.79 | 9.99 | 8.42 | 6.29 | 8.36 | 7.57 | 7.26 | 7.31 | 7.18 | 7.46 | 7.87 | 8.16 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||
| Eaton Corp. plc | 5.74 | 5.71 | 5.65 | 5.58 | 5.73 | 5.59 | 5.58 | 5.60 | 5.62 | 5.42 | 5.30 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 3.92 | 4.13 | 4.04 | 3.95 | 4.01 | 3.93 | 3.87 | 3.80 | 3.89 | 3.76 | 3.63 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (4,534,264 + 4,528,890 + 3,883,314 + 4,357,565)
÷ 2,252,615 = 7.68
2 Click competitor name to see calculations.
- Net Sales
- Over the observed periods, net sales exhibited notable fluctuations. From early 2019 through the end of 2020, sales showed a generally upward trajectory with some volatility, rising from around $1.63 billion in Q1 2019 to approximately $2.53 billion by Q4 2020. A significant surge occurred in 2021, peaking at about $5.58 billion in Q2 2021, followed by a gradual decline towards the end of that year and into 2022. In early 2022, sales again increased, reaching levels close to prior peaks before declining sharply throughout late 2022 and into 2023, stabilizing around $4.5 billion in the most recent quarters. This pattern suggests periods of rapid growth interspersed with consolidation and some weakening demand or operational challenges in the most recent quarters.
- Property, Plant and Equipment, Net (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment steadily increased through the entire timeline. Starting at approximately $939 million in Q1 2019, this asset base grew consistently to reach about $2.25 billion by Q3 2023. This increase reflects ongoing capital investments and asset acquisitions, indicating a strategy focused on capacity expansion and long-term asset growth. The pace of growth appears steady without significant abrupt changes, implying stable capital deployment.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio demonstrated a declining trend in the early period from 8.16 in Q1 2019 down to 7.18 by the end of 2019, suggesting that asset efficiency in generating sales weakened initially. This metric improved in 2020, culminating at 8.36 by year-end, indicating better utilization of the asset base. In 2021 and 2022, the ratio reached its peak values, exceeding 11.5 at times, signaling a period of heightened asset productivity and strong sales generation relative to the asset base. However, from late 2022 into 2023, the ratio declined to around 7.68 by Q3 2023, pointing to reduced asset efficiency in recent periods, likely reflecting the declining sales amid a still-growing or stable asset base.
- Overall Analysis
- The data portrays a company that invested steadily in its fixed assets leading to a doubling of its asset base over approximately four and a half years. Sales experienced marked growth, especially in 2021, but showed signs of volatility and decline in recent quarters. The net fixed asset turnover ratio underscores shifts in operational efficiency, with peak asset utilization during 2021 and 2022, followed by a downturn aligned with the weakening sales trends in 2023. The divergence between continued asset growth and declining sales efficiency in the latest periods may indicate challenges in maintaining demand or integrating new capacity effectively.
Total Asset Turnover
Builders FirstSource Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 4,534,264) | 4,528,890) | 3,883,314) | 4,357,565) | 5,761,463) | 6,926,259) | 5,681,131) | 4,634,809) | 5,508,590) | 5,576,682) | 4,173,775) | 2,530,760) | 2,295,450) | 1,945,643) | 1,787,021) | 1,763,573) | 1,981,035) | 1,904,523) | 1,631,300) | ||||||
| Total assets | 10,736,757) | 10,733,112) | 10,476,916) | 10,595,160) | 11,537,698) | 12,085,902) | 12,051,185) | 10,714,343) | 10,809,148) | 10,626,094) | 9,379,506) | 4,173,671) | 4,014,934) | 3,764,678) | 3,561,358) | 3,249,490) | 3,297,759) | 3,249,971) | 3,199,465) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 1.61 | 1.73 | 2.00 | 2.14 | 1.99 | 1.88 | 1.78 | 1.86 | 1.65 | 1.37 | 1.17 | 2.05 | 1.94 | 1.99 | 2.09 | 2.24 | 2.22 | 2.30 | 2.39 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.56 | 0.55 | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.73 | 0.72 | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.61 | 0.60 | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.43 | 0.42 | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.59 | 0.58 | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 1.19 | 1.18 | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.41 | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Total asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total assets
= (4,534,264 + 4,528,890 + 3,883,314 + 4,357,565)
÷ 10,736,757 = 1.61
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrate a general upward trend from March 2019 through June 2021, with a notable acceleration occurring in the first half of 2021. After peaking in June 2021 at approximately 5.58 billion US dollars, net sales experienced some volatility and a decline toward the end of 2021 and into early 2023. A significant drop is observed in December 2022 and March 2023, followed by a partial recovery by September 2023. Overall, net sales exhibit marked growth through 2019 and early 2021, stabilization, and then a downward adjustment with some recovery within the latest quarters.
- Total Assets
- Total assets steadily increased from March 2019 through March 2021, more than doubling during this period from approximately 3.2 billion to nearly 9.4 billion US dollars. The asset base continued to grow, reaching about 12 billion by mid-2022, before experiencing a slight contraction in the subsequent quarters through 2023. Despite this decline, total assets remained above 10 billion in the most recent quarter observed. The trend reflects substantial asset growth over the period, with some normalization or asset optimization following the peak in mid-2022.
- Total Asset Turnover
- The total asset turnover ratio declined from 2.39 in early 2019 to a low of 1.94 by the end of 2020, indicating a reduction in the efficiency of asset utilization relative to sales during this time. In 2021, the turnover ratio improved progressively from 1.17 to 1.86 by year-end, signalling better utilization as sales and assets both grew substantially. However, through 2022 and into 2023, the ratio displayed fluctuations, peaking near 2.14 in December 2022 before declining again to approximately 1.61 by September 2023. This variation suggests changing dynamics in asset effectiveness, potentially impacted by the volatility in sales figures and the adjustments in total assets.
Equity Turnover
Builders FirstSource Inc., equity turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 4,534,264) | 4,528,890) | 3,883,314) | 4,357,565) | 5,761,463) | 6,926,259) | 5,681,131) | 4,634,809) | 5,508,590) | 5,576,682) | 4,173,775) | 2,530,760) | 2,295,450) | 1,945,643) | 1,787,021) | 1,763,573) | 1,981,035) | 1,904,523) | 1,631,300) | ||||||
| Stockholders’ equity | 4,580,685) | 4,342,060) | 4,657,232) | 4,962,566) | 5,224,603) | 5,136,353) | 5,136,047) | 4,802,481) | 5,523,426) | 5,482,455) | 4,983,945) | 1,152,783) | 1,007,865) | 915,934) | 833,538) | 824,953) | 779,001) | 704,131) | 632,471) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 3.78 | 4.27 | 4.49 | 4.58 | 4.40 | 4.43 | 4.17 | 4.14 | 3.22 | 2.66 | 2.20 | 7.42 | 7.73 | 8.16 | 8.92 | 8.83 | 9.41 | 10.61 | 12.10 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.10 | 3.39 | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 1.23 | 1.23 | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 2.34 | 2.21 | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 2.11 | 2.09 | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 7.30 | 7.29 | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.96 | 0.97 | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Equity turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Stockholders’ equity
= (4,534,264 + 4,528,890 + 3,883,314 + 4,357,565)
÷ 4,580,685 = 3.78
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibited an overall upward trajectory from the first quarter of 2019 through the second quarter of 2021, increasing from approximately 1.63 billion US dollars to a peak exceeding 5.57 billion US dollars. This growth was particularly pronounced starting in 2021. However, following this peak, net sales fluctuated and generally declined throughout 2022 and into 2023, falling back to a range around 4.5 billion US dollars by the third quarter of 2023. This pattern suggests a period of strong sales expansion, followed by moderation and some volatility in recent quarters.
- Stockholders’ Equity Development
- Stockholders’ equity steadily increased from around 632 million US dollars in early 2019 to a peak of more than 5.5 billion US dollars by late 2021. This marked increase indicates substantial growth in the company’s net worth during this period. Subsequently, equity values declined somewhat through 2022 and 2023, dropping below 4.7 billion US dollars at mid-2023 but showing signs of slight recovery towards the third quarter of 2023. The initial surge and subsequent contraction in equity correspond to shifts in equity financing, retained earnings, or market valuation impacts over these periods.
- Equity Turnover Ratio Analysis
- The equity turnover ratio, which measures the efficiency of using equity to generate sales, demonstrated a clear decreasing trend from 2019 into 2020, falling from 12.1 to around 7.42. This decline indicates that, during this period, the company generated less sales per unit of equity, possibly due to rapid equity growth outpacing sales increases. In 2021, the ratio dropped sharply to a low near 2.2 but then gradually improved through 2022 and into 2023, reaching close to 3.78 by the third quarter of 2023. Although the ratio improved after its low point, it remained significantly below pre-2021 levels, reflecting a continued lower sales-to-equity efficiency relative to the earlier periods.
- Overall Insights
- The data reflects a phase of rapid expansion in both sales and equity leading up to 2021, potentially indicative of growth initiatives or acquisitions. With the subsequent decline in both sales and equity, the company appears to be in a more cautious or consolidative phase. The significant reduction and then gradual recovery in equity turnover suggests adjustments in operational efficiency or capital structure are ongoing. Continued monitoring of these key metrics will be essential to assess the company’s return to previous levels of financial efficiency and growth.