Eagle Materials Inc (EXP)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,260,510 | 2,259,300 | 2,148,070 | 1,861,520 | 1,622,640 |
| Total current assets | US$ in thousands | 668,657 | 627,693 | 521,503 | 442,727 | 661,689 |
| Total current liabilities | US$ in thousands | 245,004 | 239,409 | 212,889 | 207,551 | 169,354 |
| Working capital turnover | 5.34 | 5.82 | 6.96 | 7.92 | 3.30 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,260,510K ÷ ($668,657K – $245,004K)
= 5.34
The working capital turnover for Eagle Materials Inc has shown a fluctuating trend over the past five years. In March 2021, the working capital turnover was at 3.30, indicating that the company generated $3.30 of revenue for every dollar of working capital invested.
There was a significant improvement in efficiency in the following years, with the ratio increasing to 7.92 in March 2022, indicating that the company generated $7.92 of revenue for every dollar of working capital. This suggests a more efficient use of working capital to generate sales.
In March 2023, the working capital turnover slightly decreased to 6.96 but remained at a relatively high level. In the subsequent years, the ratio continued to decline to 5.82 in March 2024 and further to 5.34 in March 2025.
Overall, the working capital turnover for Eagle Materials Inc has shown variability, with periods of significant improvement followed by some decline. The company should continue to monitor this ratio to ensure optimal utilization of working capital resources to generate sales effectively.