Eagle Materials Inc (EXP)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,587,370 | 1,573,980 | 1,508,800 | 1,341,910 | 1,214,290 |
| Inventory | US$ in thousands | 415,175 | 373,923 | 291,882 | 236,661 | 235,749 |
| Inventory turnover | 3.82 | 4.21 | 5.17 | 5.67 | 5.15 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,587,370K ÷ $415,175K
= 3.82
Eagle Materials Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels. In March 2021, the inventory turnover was 5.15 times, showing that the company's inventory was sold and replaced approximately 5.15 times during that year.
There was a notable increase in inventory turnover to 5.67 times by March 2022, suggesting a more efficient management of inventory. However, this trend reversed in the subsequent years. By March 2025, the inventory turnover had decreased to 3.82 times, which may indicate potential challenges in managing inventory levels effectively.
It is essential for Eagle Materials Inc to monitor its inventory turnover closely to ensure optimal inventory management practices. A consistently high or increasing inventory turnover ratio typically indicates efficient inventory management, while a declining ratio may imply excess or slow-moving inventory that could lead to increased holding costs and potential obsolescence. The company should analyze the underlying reasons for fluctuations in the inventory turnover ratio and take appropriate actions to maintain an optimal balance in their inventory levels.