Eagle Materials Inc (EXP)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 34,925 | 15,242 | 19,416 | 263,520 | 118,648 |
| Short-term investments | US$ in thousands | — | — | — | 18,031 | — |
| Receivables | US$ in thousands | 212,895 | 212,419 | 183,478 | 149,971 | 280,199 |
| Total current liabilities | US$ in thousands | 239,409 | 212,889 | 207,551 | 169,354 | 169,697 |
| Quick ratio | 1.04 | 1.07 | 0.98 | 2.55 | 2.35 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($34,925K
+ $—K
+ $212,895K)
÷ $239,409K
= 1.04
The quick ratio of Eagle Materials Inc has fluctuated over the past five years. In 2024, the quick ratio stands at 1.04, showing a slight decrease from the ratio of 1.07 in 2023. This ratio indicates that the company has $1.04 in liquid assets available to cover each dollar of current liabilities, implying a relatively healthy liquidity position.
However, in 2022, the quick ratio dropped to 0.98, which may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets. The significant improvement in 2021 and 2020, with quick ratios of 2.55 and 2.35 respectively, reflects a robust liquidity position during those years.
Overall, while the recent decrease in the quick ratio raises some caution, the company generally maintained a strong liquidity position over the past five years, with the ability to meet its short-term financial obligations with its liquid assets. Further investigation into the factors causing fluctuations in the quick ratio would provide more insights into the company's financial health.