Eagle Materials Inc (EXP)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.78% | 30.33% | 29.76% | 27.91% | 25.17% |
| Operating profit margin | 26.51% | 27.69% | 22.59% | 27.63% | 17.72% |
| Pretax margin | 26.17% | 27.35% | 27.40% | 25.52% | 26.14% |
| Net profit margin | 20.50% | 21.14% | 21.49% | 20.10% | 20.92% |
Eagle Materials Inc's profitability ratios demonstrate a fairly consistent performance over the past five years. The gross profit margin has shown a gradually increasing trend, from 25.17% in March 2021 to a peak of 30.33% in March 2024, before slightly declining to 29.78% in March 2025. This indicates that the company has been able to maintain a healthy level of gross profit relative to its revenue.
Looking at the operating profit margin, there was a significant improvement in March 2022, jumping to 27.63% from 17.72% in the previous year. This was followed by fluctuations, but overall, the operating profit margin has remained above 20% in subsequent years, reflecting the company's ability to generate profits from its core operations efficiently.
The pretax margin has also shown stability over the years, ranging between 25.52% and 27.40%. This indicates that Eagle Materials Inc has been effectively managing its pre-tax income relative to its total revenue, demonstrating a consistent level of profitability before accounting for taxes.
Lastly, the net profit margin, which represents the company's bottom line profitability, has hovered around the 20-21% range, with a slight decrease in March 2025 to 20.50%. This suggests that after accounting for all expenses, including taxes, Eagle Materials Inc has been able to maintain a reasonable level of net income relative to its revenue.
Overall, based on these profitability ratios, Eagle Materials Inc has been able to maintain a stable and healthy level of profitability over the past five years, with slight fluctuations but no significant adverse trends.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.35% | 21.23% | 17.45% | 19.94% | 10.13% |
| Return on assets (ROA) | 14.20% | 16.21% | 16.60% | 14.51% | 11.96% |
| Return on total capital | 43.50% | 50.53% | 49.39% | 41.71% | 34.48% |
| Return on equity (ROE) | 31.81% | 36.50% | 38.93% | 33.02% | 24.98% |
Based on the data provided, Eagle Materials Inc's profitability ratios show a positive trend over the years but with some fluctuations.
1. Operating Return on Assets (Operating ROA) has increased from 10.13% in March 2021 to 18.35% in March 2025. This indicates that the company is effectively generating operating profits from its assets.
2. Return on Assets (ROA) has shown a mixed trend, starting at 11.96% in March 2021, peaking at 16.60% in March 2023, and then decreasing to 14.20% in March 2025. This ratio evaluates the overall profitability of the company's assets, and despite the fluctuations, the company is generating a reasonable return relative to its assets.
3. Return on Total Capital peaked at 50.53% in March 2024 but dropped to 0.00% in March 2025. This significant decline raises concerns about the company's ability to generate returns on the total capital employed in the business.
4. Return on Equity (ROE) has steadily increased from 24.98% in March 2021 to 31.81% in March 2025. This ratio reflects how efficiently the company is utilizing shareholders' equity to generate profits, and the consistent increase in ROE is a positive indicator of the company's performance.
Overall, Eagle Materials Inc has shown improvements in profitability metrics, although the significant drop in Return on Total Capital in 2025 requires further investigation to understand the underlying reasons and potential impact on the company's financial performance.