Eagle Materials Inc (EXP)
Activity ratios
Short-term
Turnover ratios
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.59 | 5.04 | 5.49 | 5.45 | 5.60 | 6.51 | 7.00 | 6.52 | 6.16 | 6.55 | 6.67 | 6.15 | 5.63 | 5.81 | 6.69 | 6.18 | 5.40 | 7.07 | 5.87 | 5.27 |
| Receivables turnover | 10.41 | 11.28 | 8.55 | 8.59 | 9.95 | 11.60 | 8.53 | 8.10 | 10.01 | 9.84 | 7.94 | 8.76 | 11.28 | 11.52 | 7.82 | 4.96 | 5.08 | 9.92 | 7.54 | 7.73 |
| Payables turnover | 13.50 | 14.34 | 14.55 | 13.98 | 14.81 | 15.10 | 13.90 | 14.01 | 12.83 | 13.96 | 13.42 | 13.78 | 15.77 | 18.54 | 18.97 | 18.33 | 17.45 | 25.48 | 18.27 | 16.55 |
| Working capital turnover | 5.71 | 6.10 | 5.59 | 5.56 | 6.85 | 7.30 | 6.13 | 6.03 | 7.81 | 7.97 | 6.01 | 3.03 | 3.44 | 4.55 | 3.32 | 2.76 | 2.80 | 4.04 | 4.71 | 4.92 |
Eagle Materials Inc's activity ratios provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.
1. Inventory Turnover: The company's inventory turnover has been relatively stable over the past several quarters, ranging from 4.59 to 7.00 times. This indicates that Eagle Materials is effectively managing its inventory levels and converting them into sales. A high inventory turnover ratio suggests that the company is selling products quickly and not holding excess inventory, which can free up working capital.
2. Receivables Turnover: Eagle Materials' receivables turnover has shown some variability but generally remains healthy, fluctuating between 4.96 and 11.60 times. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from customers, which can improve cash flow and reduce the risk of bad debts.
3. Payables Turnover: The payables turnover ratio for Eagle Materials has also been consistent, ranging from 12.83 to 25.48 times. A high payables turnover ratio suggests that the company is paying its suppliers promptly, which can help maintain good relationships and potentially earn discounts for early payments.
4. Working Capital Turnover: The working capital turnover ratio reflects how efficiently the company generates sales relative to its working capital levels. Eagle Materials' working capital turnover has varied significantly, from 2.76 to 7.97 times. A higher working capital turnover ratio indicates that the company is effectively utilizing its resources to generate revenue.
Overall, Eagle Materials Inc's activity ratios suggest that the company is managing its resources efficiently, with appropriate levels of inventory, timely collection of receivables, prompt payment of payables, and effective utilization of working capital to drive sales.
Average number of days
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.50 | 72.44 | 66.47 | 66.94 | 65.17 | 56.06 | 52.13 | 56.02 | 59.24 | 55.73 | 54.71 | 59.32 | 64.85 | 62.87 | 54.53 | 59.07 | 67.62 | 51.59 | 62.15 | 69.28 |
| Days of sales outstanding (DSO) | days | 35.05 | 32.36 | 42.68 | 42.49 | 36.70 | 31.46 | 42.80 | 45.07 | 36.46 | 37.09 | 45.95 | 41.65 | 32.36 | 31.67 | 46.68 | 73.60 | 71.91 | 36.80 | 48.43 | 47.22 |
| Number of days of payables | days | 27.04 | 25.45 | 25.09 | 26.12 | 24.65 | 24.17 | 26.25 | 26.04 | 28.46 | 26.15 | 27.20 | 26.49 | 23.15 | 19.69 | 19.24 | 19.92 | 20.92 | 14.32 | 19.98 | 22.05 |
Eagle Materials Inc's activity ratios provide insight into the efficiency of the company's management of its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates that Eagle Materials Inc's inventory turnover has been relatively stable over the periods analyzed.
- On average, the company holds inventory for around 60-70 days before selling it.
- A higher DOH might suggest slow-moving inventory or potential issues with demand forecasting or production efficiency.
2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect its accounts receivable.
- The trend in DSO shows some fluctuations but generally indicates a reasonable collection period.
- A lower DSO is generally preferred as it signifies faster cash collection and efficient management of accounts receivable.
3. Number of Days of Payables:
- The number of days of payables reflects how long the company takes to pay its suppliers.
- The trend in payables days indicates that the company has been extending its payment period over the periods analyzed.
- A longer payables period generally indicates better cash flow management but can also lead to strained supplier relationships if stretched too far.
Overall, Eagle Materials Inc's activity ratios suggest reasonable efficiency in managing its inventory, accounts receivable, and accounts payable. However, close monitoring of these ratios is essential to ensure optimal working capital management and sustainable financial performance.
Long-term
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.32 | 1.32 | 1.29 | 1.28 | 1.27 | 1.26 | 1.22 | 1.17 | 1.14 | 1.09 | 1.05 | 1.00 | 1.02 | 0.99 | 0.94 | 0.91 | 0.81 | 1.10 | 0.95 | 0.95 |
| Total asset turnover | 0.75 | 0.76 | 0.74 | 0.74 | 0.76 | 0.76 | 0.72 | 0.69 | 0.71 | 0.69 | 0.65 | 0.57 | 0.60 | 0.61 | 0.56 | 0.52 | 0.48 | 0.65 | 0.59 | 0.59 |
Eagle Materials Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate sales. The fixed asset turnover ratio has been relatively stable around 1.20-1.30 over the past few quarters, indicating that the company generates approximately $1.20-$1.30 in sales for every dollar invested in fixed assets. This suggests that Eagle Materials Inc is efficiently utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has shown more variability, ranging from 0.48 to 0.76. This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. A lower total asset turnover ratio may imply inefficiency in asset utilization and operations.
Overall, Eagle Materials Inc's fixed asset turnover suggests effective utilization of fixed assets, while the total asset turnover ratio indicates some variability in how efficiently the company is using all its assets to generate sales. Continued monitoring of these ratios can provide insights into the company's operational efficiency and asset management strategies.