Eagle Materials Inc (EXP)
Payables 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 |
| Payables | US$ in thousands | 127,183 | 110,408 | 113,679 | 84,171 | 84,183 |
| Payables turnover | 13.50 | 14.81 | 12.83 | 15.74 | 17.45 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,716,670K ÷ $127,183K
= 13.50
Eagle Materials Inc's payables turnover ratio has exhibited a decreasing trend over the past five years. The ratio was 13.50 in 2024, down from 14.81 in 2023 and 12.83 in 2022. This indicates that the company took longer to pay its suppliers in 2024 compared to the previous two years.
However, it's worth noting that the payables turnover ratio increased in 2021 and 2020, reaching 15.74 and 17.45, respectively. This suggests that the company was more efficient in paying its payables in those years.
Overall, the decreasing trend in the payables turnover ratio may imply that Eagle Materials Inc is taking longer to settle its payables, which could potentially strain its relationships with suppliers or indicate difficulties in managing working capital efficiently. Further analysis and comparison with industry benchmarks would provide additional insights into the company's payables management performance.