Eagle Materials Inc (EXP)
Pretax margin
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 617,937 | 639,203 | 623,528 | 607,863 | 588,593 | 555,845 | 536,763 | 489,554 | 475,094 | 464,322 | 437,548 | 422,067 | 429,390 | 396,664 | 189,643 | 168,905 | 94,724 | -74,192 | 102,275 | 98,972 |
| Revenue (ttm) | US$ in thousands | 2,217,040 | 2,209,817 | 2,163,667 | 2,148,123 | 2,112,898 | 2,066,217 | 2,020,952 | 1,921,890 | 1,836,631 | 1,766,816 | 1,704,833 | 1,642,535 | 1,691,662 | 1,663,802 | 1,609,201 | 1,578,462 | 1,422,288 | 1,391,547 | 1,376,832 | 1,347,125 |
| Pretax margin | 27.87% | 28.93% | 28.82% | 28.30% | 27.86% | 26.90% | 26.56% | 25.47% | 25.87% | 26.28% | 25.67% | 25.70% | 25.38% | 23.84% | 11.78% | 10.70% | 6.66% | -5.33% | 7.43% | 7.35% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $617,937K ÷ $2,217,040K
= 27.87%
The pre-tax margin for Eagle Materials Inc has shown a generally positive trend over the past eight quarters, indicating the company's ability to generate profits before taxes as a percentage of its total revenue. The company saw a gradual improvement in its pre-tax margin from a low of 6.66% in June 2020 to a peak of 28.93% in December 2023. This upward trend indicates efficient cost management and/or revenue growth strategies implemented by the company during this period.
The pre-tax margin experienced a significant decline in the December 2020 quarter, dropping to 11.78%, attributed to potential economic challenges or internal factors impacting the company's profitability temporarily. However, Eagle Materials Inc managed to rebound strongly in the subsequent quarters, surpassing its pre-decline levels and achieving two consecutive quarters with pre-tax margins exceeding 28%.
Overall, the increasing pre-tax margin trend for Eagle Materials Inc reflects the company's ability to effectively control costs and maximize profitability, suggesting operational efficiency and financial viability. Investors and stakeholders may view this trend positively as it indicates a company's ability to generate earnings before taxes relative to its revenue, a key metric reflecting operational performance.