Eagle Materials Inc (EXP)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.62 | 2.45 | 2.13 | 3.91 | 4.00 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $627,693K ÷ $239,409K
= 2.62
The current ratio of Eagle Materials Inc has exhibited fluctuations over the past five years. As of March 31, 2024, the current ratio stands at 2.62, showing an improvement from the previous year's ratio of 2.45. However, it is still lower than the ratios reported in 2021 and 2020, which were 3.91 and 4.00, respectively.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. Eagle Materials Inc's current ratio has demonstrated the company's ability to meet its short-term obligations with its current assets, although the recent decrease in the ratio from the previous years warrants attention and further analysis.
It is crucial for stakeholders to monitor the company's current ratio closely to ensure that Eagle Materials Inc maintains a healthy balance between its current assets and current liabilities, which is essential for its short-term financial stability and operational efficiency.