Builders FirstSource Inc. (NYSE:BLDR)

The data reveals a consistent upward trend in the value of property, plant, and equipment components over the five-year period examined. Both the gross and net amounts show significant growth, reflecting ongoing investments and asset accumulation within the company.

Land and improvements

Values exhibit moderate growth from $198.3 million in 2018 to approximately $343.2 million in 2022. The largest increases occur between 2020 and 2021, suggesting land acquisitions or enhancements during this phase.

Buildings and improvements

There is a steady increase from $358.4 million in 2018 to $605.0 million in 2022, with a notable acceleration in 2021 and 2022, indicating significant capital expenditures on facilities or expansion efforts in these years.

Machinery and equipment

This category shows robust growth from $403.8 million in 2018 to more than $1.08 billion by 2022. The most pronounced growth occurs between 2020 and 2021, nearly doubling in this period, signaling substantial investment in operational capabilities or modernization.

Furniture, fixtures and information technology

Values in this category increase steadily from $78.9 million in 2018 to $158.5 million in 2022, reflecting gradual enhancements or replacements likely related to supporting infrastructure and office technology.

Construction in progress

This item fluctuates over the years, starting at $20.8 million in 2018, dipping in 2020 to $16.6 million, then sharply rising to over $206.1 million in 2022. The significant increase in later years suggests active projects nearing completion or large-scale development activities underway.

Finance lease right-of-use assets

Reported only from 2019 onward, these assets decreased sharply from $37.2 million in 2019 to $6.1 million in 2021 before a slight increase to $8.0 million in 2022. This decline might reflect lease terminations or transitions in leasing strategy.

Property, plant and equipment, gross

The gross value escalates markedly from $1.06 billion in 2018 to $2.41 billion in 2022, with an especially steep rise between 2020 and 2021. This surge indicates substantial capital investment and asset base expansion over recent years.

Accumulated depreciation

Accumulated depreciation follows a consistent increasing trend from -$390.1 million in 2018 to -$837.7 million in 2022. The steady increase highlights ongoing asset aging and usage, with depreciation expenses growing in line with the expanding asset base.

Property, plant and equipment, net

Net property, plant, and equipment values have nearly doubled from $670.1 million in 2018 to $1.57 billion in 2022. The most significant increase is evident between 2020 and 2021, aligning with the gross asset growth and underscoring effective asset acquisition and capitalization policies.

In summary, the company has demonstrated a strategic emphasis on growing its physical asset base, particularly through increased investment in machinery and equipment, buildings, and ongoing construction projects. The marked rise in construction in progress and machinery suggests expansion and modernization activities. Depreciation increases are consistent with the asset growth, reflecting a normal aging and usage pattern. The fluctuations in finance lease right-of-use assets indicate adjustments in lease arrangements over the period considered.

Average Age Ratio

The average age ratio, expressed as a percentage, experienced a fluctuating trend over the analyzed period. Starting at 45.26% at the end of 2018, it rose slightly to 46.16% in 2019 and then increased further to 49.11% in 2020. However, a significant decline was observed in 2021, where the ratio dropped to 38.88%, followed by a modest increase to 40.62% in 2022. This pattern indicates an aging asset base initially, followed by a reduction in the asset age relative to its useful life toward the later years.

Estimated Total Useful Life

The estimated total useful life of the property, plant, and equipment showed a downward adjustment from 12 years in 2018 and 2019 to 11 years in 2020, further decreasing to 9 years in 2021. It then increased again to 11 years in 2022. This variability suggests reassessment of asset longevity, potentially reflecting changes in asset usage, maintenance strategies, or technological considerations affecting expected lifespan.

Estimated Age (Time Elapsed Since Purchase)

The estimated asset age exhibited a decrease starting in 2020. The figure remained steady at 5 years in 2018 and 2019, increased to 6 years in 2020, and then dropped to 4 years in both 2021 and 2022. This trend may reflect asset replacement activities, acquisitions of newer assets, or revaluation practices that brought down the average time elapsed since purchase.

Estimated Remaining Life

The estimated remaining life remained stable at 6 years throughout the entire period from 2018 to 2022. This consistency suggests that despite fluctuations in the total useful life and asset age, the company maintains a conservative and steady outlook on the duration assets are expected to remain serviceable moving forward.

Accumulated Depreciation

There is a consistent upward trend in accumulated depreciation over the five-year period, rising from 390,125 thousand USD at the end of 2018 to 837,746 thousand USD by the end of 2022. This increase suggests ongoing wear and usage of the company’s property, plant, and equipment assets, reflecting the aging and utilization of these assets.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment shows a steady increase, starting at 1,060,200 thousand USD in 2018 and reaching 2,405,377 thousand USD by the end of 2022. The most notable growth occurred between 2020 and 2021, indicating significant capital investments or acquisitions during that period. This growth reflects the expansion of the company's asset base.

Land and Improvements

The value of land and improvements remained relatively stable from 2018 through 2020, fluctuating slightly but staying close to 198,000 to 206,000 thousand USD. However, a marked increase was observed from 2020 to 2021, rising sharply to 329,354 thousand USD and continuing to grow slightly to 343,230 thousand USD by the end of 2022. This suggests either new land acquisitions or improvements to existing land assets.

Average Age Ratio

The average age ratio experienced a decline after peaking near 49.11% in 2020. It dropped to 38.88% in 2021 and slightly increased to 40.62% in 2022. This trend indicates a relative rejuvenation of the asset base likely due to new asset additions, which lowered the overall average age, despite the generally increasing accumulated depreciation.

Property, Plant, and Equipment - Gross

The gross value of property, plant, and equipment exhibited a consistent upward trajectory over the five-year period. It increased from approximately $1,060 million in 2018 to about $2,405 million in 2022, reflecting significant capital investment and asset expansion. The most notable jump occurred between 2020 and 2021, where the value surged by over 61%, indicating possible major acquisitions or expansions during that year.

Land and Improvements

The value attributed to land and improvements showed modest growth. Starting at around $198 million in 2018, it slightly declined in 2019 but recovered and increased to approximately $343 million by 2022. The growth rate was relatively stable, with no abrupt changes, suggesting steady acquisition or revaluation of land and related assets.

Depreciation Expense

Depreciation expense rose steadily from $74.4 million in 2018 to $194.6 million in 2022. A notable acceleration is observed between 2020 and 2021, when depreciation expense doubled, in line with the substantial increase in gross property, plant, and equipment value during that period. This suggests an increase in the depreciable asset base and possibly changes in depreciation policy or asset lifespan.

Estimated Total Useful Life

The estimated useful life of the assets showed a slight fluctuation, remaining at 12 years for 2018 and 2019, then decreasing to 11 years in 2020, further to 9 years in 2021, and rising again to 11 years in 2022. This variability may reflect changes in asset composition, depreciation methods, or reassessment of asset longevity in financial reporting.

Overall Insights

The data reveals a pattern of significant asset growth particularly from 2020 onwards, accompanied by increased depreciation expenses. The fluctuation in estimated useful life indicates adjustments in asset valuation approach or asset mix. The steady increase in land and improvements supports an expanding asset base, while the sharp increase in gross assets and depreciation around 2021 points to substantial investment activities that have impacted the company's fixed asset profile over the period analyzed.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the five-year period. Starting at 390,125 thousand USD at the end of 2018, it increased steadily each year, reaching 837,746 thousand USD by the end of 2022. This reflects a continuous accumulation of depreciation expenses, indicating ongoing usage and aging of property, plant, and equipment assets.

Depreciation Expense

Depreciation expense demonstrates a generally rising pattern, with a significant jump observed between 2020 and 2021. Initially, the expense increased incrementally from 74,400 thousand USD in 2018 to 94,500 thousand USD in 2020. However, in 2021, depreciation expense almost doubled to 189,300 thousand USD and further increased slightly to 194,600 thousand USD in 2022. This spike suggests either an increase in asset base, changes in depreciation methods or rates, or accelerated depreciation possibly due to asset disposals or revaluations.

Time Elapsed Since Purchase

The average time elapsed since purchase fluctuates within a narrow range, with values of 5 years in 2018 and 2019, increasing slightly to 6 years in 2020, then decreasing to 4 years in both 2021 and 2022. This reduction in average age in the latter years could imply the acquisition of newer assets, replacement of older equipment, or disposal of long-held assets, which might also be related to the increased depreciation expense recorded during this period.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment increased consistently over the five-year period, rising from approximately $670 million at the end of 2018 to around $1.57 billion by the end of 2022. This represents a more than twofold increase, with notably substantial growth occurring between 2020 and 2021, where the value nearly doubled. The growth trend indicates significant investment or acquisitions in tangible fixed assets, reflecting expansion or modernization efforts.

Land and Improvements

The value of land and improvements remained relatively stable from 2018 through 2020, fluctuating slightly around the $198 million to $206 million range. From 2020 to 2021, there was a marked increase to approximately $329 million, followed by a moderate rise to around $343 million in 2022. This suggests acquisition or development of land assets accelerated particularly beginning in 2021.

Depreciation Expense

Depreciation expense followed an upward trend, rising from $74.4 million in 2018 to $194.6 million in 2022, more than doubling over the period. The largest increments occurred between 2020 and 2021, nearly doubling from $94.5 million to $189.3 million, consistent with the substantial increase in net property, plant, and equipment values seen during the same interval. This indicates increased asset base subject to depreciation, reflecting capital expenditure activity.

Estimated Remaining Life

The estimated remaining life of the assets remained constant at 6 years throughout all periods, implying a consistent depreciation policy or asset lifecycle management approach despite fluctuations in asset value and depreciation expense.