Eagle Materials Inc (EXP)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 20,401 | 34,925 | 15,242 | 19,416 | 263,520 |
| Short-term investments | US$ in thousands | — | — | — | — | 18,031 |
| Total current liabilities | US$ in thousands | 245,004 | 239,409 | 212,889 | 207,551 | 169,354 |
| Cash ratio | 0.08 | 0.15 | 0.07 | 0.09 | 1.66 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($20,401K
+ $—K)
÷ $245,004K
= 0.08
The cash ratio of Eagle Materials Inc has shown fluctuations over the past five years. Starting at a healthy 1.66 on March 31, 2021, the ratio declined significantly to 0.09 by March 31, 2022. This sharp decrease may indicate potential liquidity challenges or a decrease in the company's ability to cover its short-term liabilities with cash alone. The ratio remained low at 0.07 on March 31, 2023, pointing towards ongoing liquidity concerns.
However, there was a slight improvement in the cash ratio to 0.15 by March 31, 2024, suggesting some progress in managing liquidity. Nevertheless, the ratio dropped again to 0.08 by March 31, 2025, indicating that Eagle Materials Inc still faces challenges in maintaining sufficient cash reserves relative to its short-term obligations. Overall, the downward trend observed in the cash ratio highlights the importance for the company to closely monitor and potentially improve its liquidity position in the future.