Eagle Materials Inc (EXP)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,716,670 | 1,634,700 | 1,458,080 | 1,324,610 | 1,468,810 |
| Inventory | US$ in thousands | 373,923 | 291,882 | 236,661 | 235,749 | 272,121 |
| Inventory turnover | 4.59 | 5.60 | 6.16 | 5.62 | 5.40 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,716,670K ÷ $373,923K
= 4.59
The inventory turnover of Eagle Materials Inc has shown a decreasing trend over the past five years. It decreased from 5.40 in 2020 to 4.59 in 2024. This suggests that the company's ability to sell its inventory quickly has declined over the period. A lower inventory turnover may indicate potential issues such as overstocking, slow-moving inventory, or difficulties in matching production with customer demand. Further investigation is recommended to understand the reasons behind this declining trend and to identify strategies for improving inventory management efficiency.