Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Builders FirstSource Inc., profitability ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Builders FirstSource Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Builders FirstSource Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Builders FirstSource Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Builders FirstSource Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Builders FirstSource Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Builders FirstSource Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross margin | 7,744,379) | 5,850,956) | 2,222,584) | 1,976,829) | 1,922,940) | |
| Net sales | 22,726,418) | 19,893,856) | 8,558,874) | 7,280,431) | 7,724,771) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 34.08% | 29.41% | 25.97% | 27.15% | 24.89% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 5.26% | 4.84% | -9.78% | 5.83% | — | |
| Caterpillar Inc. | 26.91% | 26.30% | 25.47% | 27.83% | — | |
| Eaton Corp. plc | 33.19% | 32.28% | 30.52% | 32.97% | — | |
| GE Aerospace | 24.55% | 24.19% | 17.26% | 23.52% | — | |
| Honeywell International Inc. | 36.99% | 35.85% | 32.07% | 33.70% | — | |
| Lockheed Martin Corp. | 12.56% | 13.52% | 13.23% | 13.99% | — | |
| RTX Corp. | 20.38% | 19.40% | 15.08% | 25.93% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 7,744,379 ÷ 22,726,418 = 34.08%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Builders FirstSource Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Builders FirstSource Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | 3,770,206) | 2,387,424) | 543,854) | 392,306) | 368,968) | |
| Net sales | 22,726,418) | 19,893,856) | 8,558,874) | 7,280,431) | 7,724,771) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.59% | 12.00% | 6.35% | 5.39% | 4.78% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -5.33% | -4.66% | -21.95% | -2.58% | — | |
| Caterpillar Inc. | 13.97% | 14.27% | 11.67% | 16.33% | — | |
| Eaton Corp. plc | 14.55% | 15.69% | 11.45% | 13.38% | — | |
| GE Aerospace | 6.05% | 8.58% | 5.49% | 12.84% | — | |
| Honeywell International Inc. | 18.12% | 18.03% | 17.45% | 18.66% | — | |
| Lockheed Martin Corp. | 12.65% | 13.61% | 13.22% | 14.29% | — | |
| RTX Corp. | 8.07% | 7.70% | -3.34% | 11.64% | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 8.29% | 9.11% | 3.00% | 10.93% | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.34% | 9.80% | 4.43% | 9.67% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating profit margin = 100 × Income from operations ÷ Net sales
= 100 × 3,770,206 ÷ 22,726,418 = 16.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Builders FirstSource Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Builders FirstSource Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,749,369) | 1,725,416) | 313,537) | 221,809) | 205,191) | |
| Net sales | 22,726,418) | 19,893,856) | 8,558,874) | 7,280,431) | 7,724,771) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 12.10% | 8.67% | 3.66% | 3.05% | 2.66% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -7.41% | -6.75% | -20.42% | -0.83% | — | |
| Caterpillar Inc. | 11.85% | 13.47% | 7.68% | 12.00% | — | |
| Eaton Corp. plc | 11.86% | 10.92% | 7.90% | 10.34% | — | |
| GE Aerospace | 0.31% | -9.17% | 7.81% | -5.69% | — | |
| Honeywell International Inc. | 14.00% | 16.11% | 14.64% | 16.73% | — | |
| Lockheed Martin Corp. | 8.69% | 9.42% | 10.45% | 10.42% | — | |
| RTX Corp. | 7.75% | 6.00% | -6.22% | 7.19% | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 5.27% | 3.71% | 1.85% | 5.03% | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.27% | 6.43% | 1.43% | 3.90% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,749,369 ÷ 22,726,418 = 12.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Builders FirstSource Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Builders FirstSource Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,749,369) | 1,725,416) | 313,537) | 221,809) | 205,191) | |
| Stockholders’ equity | 4,962,566) | 4,802,481) | 1,152,783) | 824,953) | 596,338) | |
| Profitability Ratio | ||||||
| ROE1 | 55.40% | 35.93% | 27.20% | 26.89% | 34.41% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 42.25% | 39.37% | 19.56% | 41.77% | — | |
| Eaton Corp. plc | 14.45% | 13.06% | 9.44% | 13.75% | — | |
| GE Aerospace | 0.62% | -16.17% | 16.04% | -17.58% | — | |
| Honeywell International Inc. | 29.74% | 29.85% | 27.23% | 33.22% | — | |
| Lockheed Martin Corp. | 61.86% | 57.62% | 113.60% | 199.23% | — | |
| RTX Corp. | 7.16% | 5.29% | -4.88% | 13.25% | — | |
| ROE, Sector | ||||||
| Capital Goods | 13.39% | 8.48% | 4.42% | 18.11% | — | |
| ROE, Industry | ||||||
| Industrials | 15.53% | 16.58% | 3.94% | 13.76% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,749,369 ÷ 4,962,566 = 55.40%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Builders FirstSource Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Builders FirstSource Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,749,369) | 1,725,416) | 313,537) | 221,809) | 205,191) | |
| Total assets | 10,595,160) | 10,714,343) | 4,173,671) | 3,249,490) | 2,932,309) | |
| Profitability Ratio | ||||||
| ROA1 | 25.95% | 16.10% | 7.51% | 6.83% | 7.00% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -3.60% | -3.03% | -7.80% | -0.48% | — | |
| Caterpillar Inc. | 8.18% | 7.84% | 3.83% | 7.77% | — | |
| Eaton Corp. plc | 7.03% | 6.30% | 4.43% | 6.74% | — | |
| GE Aerospace | 0.12% | -3.28% | 2.25% | -1.87% | — | |
| Honeywell International Inc. | 7.97% | 8.60% | 7.40% | 10.47% | — | |
| Lockheed Martin Corp. | 10.84% | 12.41% | 13.47% | 13.11% | — | |
| RTX Corp. | 3.27% | 2.39% | -2.17% | 3.96% | — | |
| ROA, Sector | ||||||
| Capital Goods | 2.84% | 1.86% | 0.80% | 2.72% | — | |
| ROA, Industry | ||||||
| Industrials | 3.46% | 3.83% | 0.74% | 2.39% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,749,369 ÷ 10,595,160 = 25.95%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Builders FirstSource Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |