Eagle Materials Inc (EXP)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 463,416 | 477,639 | 461,540 | 374,247 | 339,444 |
| Total stockholders’ equity | US$ in thousands | 1,456,700 | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 |
| ROE | 31.81% | 36.50% | 38.93% | 33.02% | 24.98% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $463,416K ÷ $1,456,700K
= 31.81%
Based on the provided data, Eagle Materials Inc's return on equity (ROE) has shown a positive trend over the past five years. The ROE has steadily increased from 24.98% as of March 31, 2021, to a peak of 38.93% as of March 31, 2023. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders.
However, there was a slight decrease in ROE to 31.81% as of March 31, 2025. This decline may be attributed to various factors such as changes in the company's financial structure, profitability, or asset management efficiency.
Overall, Eagle Materials Inc's ROE performance demonstrates a strong financial management and efficient use of shareholder equity to generate returns, although the recent decrease in ROE warrants further analysis to understand the underlying reasons for this change.