Builders FirstSource, Inc. (NYSE:BLDR) Q3 2023 Earnings Call Transcript

Peter Jackson: Yeah. You’re right. The midpoint is down. Really straightforward answer on that and hopefully it’s consistent with everything you guys know about us and that’s that when we shrink this business, we release a tremendous amount of working capital. And when the business is stable, it’s sort of flat. And when it’s growing, we’re going to use some working capital. We generally use a rule of thumb of about 10% incrementals and decrementals to sales as a good proxy for what happens in our working capital. Obviously, you got some puts and takes there. We’ve done some good work on managing through some issues that we’ve been talking about over the past couple of years. But the primary answer is just the working capital flex with the size of the topline.

Steven Ramsey: All right. Thank you.

Peter Jackson: All right. Appreciate it.

Operator: And it looks like we have reached our allotted time for our Q&A session. This does conclude today’s program. Thank you for your participation. You may now disconnect.