Eagle Materials Inc (EXP)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,217,040 | 2,209,817 | 2,163,667 | 2,148,123 | 2,112,898 | 2,066,217 | 2,020,952 | 1,921,890 | 1,836,631 | 1,766,816 | 1,704,833 | 1,642,535 | 1,691,662 | 1,663,802 | 1,609,201 | 1,578,462 | 1,422,288 | 1,391,547 | 1,376,832 | 1,347,125 |
| Total current assets | US$ in thousands | 627,693 | 587,731 | 611,806 | 616,041 | 521,503 | 491,278 | 552,874 | 547,139 | 442,727 | 415,347 | 472,111 | 731,303 | 661,689 | 528,558 | 648,407 | 771,593 | 678,217 | 507,799 | 487,055 | 466,517 |
| Total current liabilities | US$ in thousands | 239,409 | 225,513 | 224,535 | 229,697 | 212,889 | 208,300 | 223,321 | 228,635 | 207,551 | 193,675 | 188,645 | 189,013 | 169,354 | 163,061 | 163,085 | 200,033 | 169,697 | 163,326 | 194,775 | 192,956 |
| 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 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,217,040K ÷ ($627,693K – $239,409K)
= 5.71
The working capital turnover of Eagle Materials Inc has shown fluctuations over the past 20 quarters. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is efficiently managing its working capital.
In the most recent quarter, ending March 31, 2024, the working capital turnover was 5.71, indicating that for every dollar of working capital, Eagle Materials generated $5.71 in sales. This ratio was slightly lower compared to the ratio of 6.10 in the previous quarter, December 31, 2023.
Looking further back, the company experienced a peak in working capital turnover at 7.97 in December 31, 2021. However, there were notable declines in the ratios during June 30, 2021, and March 31, 2021, reflecting potential challenges in managing working capital efficiency during those periods.
Overall, the trend in working capital turnover for Eagle Materials Inc showcases variability over time, with some quarters exhibiting strong efficiency in utilizing working capital to drive sales, while other quarters showing lower efficiency. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial performance and liquidity management.