Eagle Materials Inc (EXP)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 716,902 | 674,740 | 552,102 | 445,796 | 385,251 |
| Total assets | US$ in thousands | 2,947,020 | 2,781,000 | 2,579,650 | 2,838,680 | 2,961,020 |
| Operating ROA | 24.33% | 24.26% | 21.40% | 15.70% | 13.01% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $716,902K ÷ $2,947,020K
= 24.33%
Eagle Materials Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, consistently improving from 13.01% in March 2020 to 24.33% in March 2024. This indicates the company's ability to generate profits from its operations relative to its total assets has been strengthening over time.
The consistent increase in operating ROA suggests that Eagle Materials Inc has been effectively managing its assets to generate higher operating profits. This could be attributed to improved operational efficiency, effective cost control measures, and potentially strong revenue growth.
The significant improvement in operating ROA from 15.70% in March 2021 to 24.33% in March 2024 demonstrates the company's enhanced performance in utilizing its assets to drive profitability. This could be an indication of successful strategic decisions, operational improvements, or effective capital allocation.
Overall, the upward trajectory of Eagle Materials Inc's operating ROA reflects the company's ability to efficiently utilize its assets to generate operating income, which is a positive indicator of its operational performance and potential for sustained financial health in the future.