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Builders FirstSource Financial Strength

: 6 (As of Jun. 2022)
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Builders FirstSource has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Builders FirstSource's Interest Coverage for the quarter that ended in Jun. 2022 was 19.32. Builders FirstSource's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.15. As of today, Builders FirstSource's Altman Z-Score is 4.19.


Competitive Comparison

For the Building Products & Equipment subindustry, Builders FirstSource's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Builders FirstSource Financial Strength Distribution

For the Construction industry and Industrials sector, Builders FirstSource's Financial Strength distribution charts can be found below:

* The bar in red indicates where Builders FirstSource's Financial Strength falls into.



Builders FirstSource Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Builders FirstSource's Interest Expense for the months ended in Jun. 2022 was $-71 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,366 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,954 Mil.

Builders FirstSource's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1365.868/-70.715
=19.32

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Builders FirstSource's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(99.389 + 3954.357) / 27705.036
=0.15

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Builders FirstSource has a Z-score of 4.19, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.19 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Builders FirstSource  (NYSE:BLDR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Builders FirstSource has the Financial Strength Rank of 6.


Builders FirstSource Financial Strength Related Terms

Thank you for viewing the detailed overview of Builders FirstSource's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Builders FirstSource Business Description

Builders FirstSource logo
Traded in Other Exchanges
Address
2001 Bryan Street, Suite 1600, Dallas, TX, USA, 75201
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
Executives
Messersmith Amy B officer: Chief People Officer 2001 BRYAN ST STE 1600 DALLAS TX 75201
Herron Stephen J officer: President - East Division 2001 BRYAN ST STE 1600 DALLAS TX 75201
Hiller Michael officer: President - Central Division 2001 BRYAN ST STE 1600 DALLAS TX 75201
Flitman David E director, officer: President C/O NALCO COMPANY 1601 WEST DIEHL ROAD NAPERVILLE IL 60563
Farmer Michael Alan officer: President - Commercial Ops C/O BMC STOCK HOLDINGS, INC. 4800 FALLS OF NEUSE RD, SUITE 400 RALEIGH NC 27609
Johnson Timothy D officer: EVP & General Counsel 5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Boydston Cory Jacobs director C/O BMC STOCK HOLDINGS, INC. 4800 FALLS OF NEUSE RD, SUITE 400 RALEIGH NC 27617
Alexander Mark A director ALEXANDER INVESTORS LLC 16 PINE GLEN DRIVE BLAUVELT NY 10913
Bullock David W director C/O GRAHAM PACKAGING HOLDINGS COMPANY 2401 PLEASANT VALLEY ROAD YORK PA 17402
Oleary James director
Hayes William B director 231 MAPLE AVENUE BURLINGTON NC 27215
Davis Janice L director 2001 BRYAN ST. SUITE 1600 DALLAS TX 75201
Rush David E officer: SVP - COO - East 2001 BRYAN ST., SUITE 1600 DALLAS TX 75201
Robins Scott L officer: SVP - COO - West 2001 BRYAN ST., SUITE 1600 DALLAS TX 75201
Jackson Peter M. officer: SVP & CFO 2001 BRYAN ST., SUITE 1600 DALLAS TX 75201

Builders FirstSource Headlines

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