Builders FirstSource Inc. (NYSE:BLDR)

The analysis of the financial data reveals notable trends and shifts in the composition of assets over the five-year period.

Cash and Cash Equivalents

The proportion of cash and cash equivalents relative to total assets exhibited considerable volatility. Starting at a low 0.35% in 2018, it increased sharply to 10.15% in 2020, followed by a steep decline to 0.4% in 2021, and then a slight recovery to 0.76% in 2022. This irregular pattern suggests fluctuations in liquidity management or working capital requirements.

Accounts Receivable, Less Allowances

There was a consistent downward trend in accounts receivable as a percentage of total assets, dropping from 22.31% in 2018 to 13.67% in 2022. This indicates either improved collection efficiency, tighter credit policies, or a relative decrease in sales on credit terms.

Other Receivables

Other receivables remained relatively stable, fluctuating mildly between 2.34% and 2.22%, without any clear upward or downward trend, signifying a steady contribution to current assets.

Inventories, Net

Inventories as a share of total assets consistently declined from 20.36% in 2018 to 13.46% in 2022. This trend may reflect inventory optimization efforts or changes in sales demand and supply chain practices.

Contract Assets

Contract assets data became available starting in 2020 with a small proportion (1.37%) increasing slightly in subsequent years but remaining under 2%. This emerging category suggests recognition of work-in-progress or unbilled receivables under new accounting standards or business arrangements.

Other Current Assets

This category persisted at low and stable levels between 1.5% in 2018 and 1.17% in 2022, indicating consistency in minor current asset accounts.

Current Assets

Current assets as a percentage of total assets experienced a notable peak at 53.28% in 2020 but generally trended downward before and after, decreasing from 46.85% in 2018 to 33.01% in 2022. The peak in 2020 was driven mainly by increased cash and cash equivalents, suggesting temporary liquidity accumulation.

Property, Plant and Equipment, Net

There was a declining trend in net property, plant, and equipment assets from 22.85% in 2018 to a low of 12.93% in 2021, followed by a modest increase to 14.8% in 2022. This could be indicative of asset disposals, depreciation outpacing acquisitions, or shifts in fixed asset investment strategy.

Operating Lease Right-of-Use Assets, Net

First reported in 2019 at 9.01%, this category declined steadily to 4.58% in 2022, reflecting either reductions in lease commitments or accounting changes related to lease structures.

Goodwill

Goodwill as a proportion of total assets decreased from 25.25% in 2018 to 18.82% in 2020, then sharply increased to 32.63% by 2022. The initial reduction may indicate impairment or divestitures, whereas the subsequent increase suggests acquisitions or revaluations adding intangible value to the balance sheet.

Intangible Assets, Net

Intangible assets decreased slightly from 3.52% in 2018 to 2.87% in 2020, then surged strongly to about 14.7% in 2021 and 2022. This pattern likely reflects capitalisation of new intangible assets, potentially through acquisitions or investments in intellectual property.

Deferred Income Taxes

Deferred income taxes as a proportion of total assets diminished from 0.78% in 2018 to minimal values in 2020 and were not reported in the last two years, indicating potential changes in tax position or asset classification.

Other Assets, Net

Other assets remained minimal and stable, fluctuating slightly between 0.76% and 0.27%, showing no significant impact on total asset composition.

Noncurrent Assets

Noncurrent assets accounted for a majority of total assets, initially increasing from 53.15% in 2018 to 59.78% in 2019, then declining to 46.72% in 2020, followed by notable increases to 62.96% in 2021 and 66.99% in 2022. This reflects a shift in asset structure with increasing emphasis on longer-term holdings after 2020.