Eagle Materials Inc (EXP)

Cash conversion cycle

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Days of inventory on hand (DOH) days 95.47 90.69 86.94 86.38 86.71 78.53 72.08 72.46 70.61 60.63 56.47 60.75 64.37 59.45 58.63 63.95 70.73 69.86 71.08 77.08
Days of sales outstanding (DSO) days 35.90 29.64 40.05 45.26 34.39 31.74 41.87 41.71 35.91 31.07 42.35 44.49 35.98 36.58 45.19 40.93 33.71 33.02 48.74 77.02
Number of days of payables days 29.87 27.45 30.42 34.46 29.49 27.59 27.20 28.27 26.71 26.14 28.44 28.24 30.92 27.90 29.15 28.56 25.25 21.87 25.08 25.99
Cash conversion cycle days 101.50 92.88 96.57 97.18 91.61 82.68 86.74 85.90 79.81 65.56 70.38 76.99 69.43 68.13 74.67 76.32 79.19 81.01 94.74 128.11

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 95.47 + 35.90 – 29.87
= 101.50

The cash conversion cycle of Eagle Materials Inc has shown fluctuating trends over the past several quarters. The company's cash conversion cycle decreased from 128.11 days as of June 30, 2020, to 74.67 days as of September 30, 2021, indicating an improvement in the efficiency of its working capital management.

Subsequently, there was a slight increase in the cash conversion cycle to 86.74 days by September 30, 2023, before decreasing again to 92.88 days by December 31, 2024. This fluctuation suggests potential variability in the company's cash inflows and outflows during these periods.

As of March 31, 2025, the cash conversion cycle stood at 101.50 days, indicating a prolonged time taken by Eagle Materials Inc to convert its investments in raw materials and other resources into cash from sales. This may signify a need for the company to focus on improving its inventory turnover, accounts receivable collection, and accounts payable management to enhance cash flow efficiency.

Overall, the analysis of the cash conversion cycle suggests that Eagle Materials Inc may benefit from streamlining its operational processes to shorten the cycle and optimize its working capital management for improved financial performance in the future.