Eagle Materials Inc (EXP)

Current ratio

		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
Total current assets	US$ in thousands	668,657	618,462	730,449	712,989	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
Total current liabilities	US$ in thousands	245,004	223,881	312,227	290,550	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
Current ratio		2.73	2.76	2.34	2.45	2.62	2.61	2.72	2.68	2.45	2.36	2.48	2.39	2.13	2.14	2.50	3.87	3.91	3.24	3.98	3.86

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $668,657K ÷ $245,004K
= 2.73

Eagle Materials Inc's current ratio has shown fluctuations over the reported periods, ranging from a high of 3.98 in September 2020 to a low of 2.14 in December 2021. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as favorable.

The current ratio for Eagle Materials has generally remained above 2, indicating a strong ability to cover short-term obligations with current assets. However, a declining trend from 2021 to 2023, with ratios decreasing from above 3 to around 2.45, suggests a potential reduction in liquidity and ability to meet short-term obligations.

Although the ratio slightly improved in the subsequent periods, it remained below the levels seen in the earlier years. Further monitoring of the current ratio is advisable to assess the company's short-term liquidity position and financial health.