Eagle Materials Inc (EXP)
Working capital 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 current assets | US$ in thousands | 627,693 | 521,503 | 442,727 | 661,689 | 678,217 |
| Total current liabilities | US$ in thousands | 239,409 | 212,889 | 207,551 | 169,354 | 169,697 |
| Working capital turnover | 5.71 | 6.85 | 7.76 | 3.44 | 2.78 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,217,040K ÷ ($627,693K – $239,409K)
= 5.71
The working capital turnover ratio for Eagle Materials Inc has displayed fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2024, the working capital turnover ratio stands at 5.71, showing a decrease from the previous year's ratio of 6.85. This decrease may suggest that the company's efficiency in converting its working capital into sales has slightly declined.
Comparing to 2022, where the ratio was 7.76, the current ratio signifies a downward trend in the efficiency of working capital utilization. However, it is worth noting that the 2024 ratio is still higher than that of 2020, indicating an improvement in working capital turnover efficiency over the past five years.
Overall, Eagle Materials Inc's working capital turnover has exhibited variability, and it would be beneficial for the company to analyze the reasons behind these fluctuations to enhance operational efficiency and optimize the management of its working capital.