Eagle Materials Inc (EXP)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,587,371 | 1,578,835 | 1,576,828 | 1,570,271 | 1,573,976 | 1,551,685 | 1,526,197 | 1,523,808 | 1,508,803 | 1,488,008 | 1,459,646 | 1,403,170 | 1,341,908 | 1,301,439 | 1,268,372 | 1,238,854 | 1,216,636 | 1,194,693 | 1,166,140 | 1,151,325 |
| Inventory | US$ in thousands | 415,175 | 392,266 | 375,602 | 371,619 | 373,923 | 333,828 | 301,374 | 302,525 | 291,882 | 247,155 | 225,835 | 233,543 | 236,661 | 211,978 | 203,745 | 217,052 | 235,749 | 228,667 | 227,106 | 243,125 |
| Inventory turnover | 3.82 | 4.02 | 4.20 | 4.23 | 4.21 | 4.65 | 5.06 | 5.04 | 5.17 | 6.02 | 6.46 | 6.01 | 5.67 | 6.14 | 6.23 | 5.71 | 5.16 | 5.22 | 5.13 | 4.74 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,587,371K ÷ $415,175K
= 3.82
The inventory turnover ratio for Eagle Materials Inc has shown a gradual increase from 4.74 in June 2020 to 3.82 in March 2025. This ratio measures the efficiency of the company in managing its inventory by calculating how many times its inventory is sold and replaced within a specific period.
The upward trend in the inventory turnover ratio indicates that Eagle Materials Inc has been effectively managing its inventory levels over the analyzed period. A higher ratio suggests that the company is selling its inventory more frequently, which can lead to lower holding costs and reduced risk of inventory obsolescence.
However, the slight decline in the inventory turnover ratio towards the end of the period may signal a potential issue with inventory management efficiency. A decrease in this ratio could imply slower sales or excess inventory, which might result in higher holding costs and potential write-downs.
Overall, Eagle Materials Inc's inventory turnover ratio has shown a positive trajectory, indicating effective management of inventory levels, but it is essential for the company to continue monitoring and optimizing its inventory practices to sustain efficiency in the long run.