Eagle Materials Inc (EXP)
Total asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,217,040 | 2,112,900 | 1,824,550 | 1,691,400 | 1,412,390 |
| Total assets | US$ in thousands | 2,947,020 | 2,781,000 | 2,579,650 | 2,838,680 | 2,961,020 |
| Total asset turnover | 0.75 | 0.76 | 0.71 | 0.60 | 0.48 |
March 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,217,040K ÷ $2,947,020K
= 0.75
Eagle Materials Inc's total asset turnover has shown a fluctuating trend over the past five years. The company's ability to generate sales from its assets has improved in recent years, with ratios of 0.75 in 2024 and 0.76 in 2023, indicating a higher efficiency in asset utilization. This suggests that Eagle Materials has been more effective in utilizing its assets to generate revenue.
Furthermore, comparing the most recent ratios to those from 2020 and 2021, there has been a notable improvement in asset turnover. The ratio has increased from 0.48 in 2020 to 0.75 in 2024, showing a significant enhancement in asset utilization efficiency over this period.
However, it is important to note that the ratio decreased slightly in 2022 to 0.71, which indicates a temporary dip in asset turnover efficiency. This may warrant further investigation into the specific factors impacting the company's asset management strategies during that period.
Overall, the improving trend in total asset turnover suggests that Eagle Materials has been gradually enhancing its operational efficiency and effectiveness in generating sales from its asset base, which is a positive indicator of the company's financial performance and management of resources.