Eagle Materials Inc (EXP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 477,639 | 500,896 | 488,942 | 477,384 | 461,540 | 435,500 | 420,795 | 383,925 | 374,247 | 365,942 | 344,656 | 338,565 | 339,444 | 345,862 | 150,037 | 125,796 | 70,894 | -129,332 | 43,015 | 43,825 |
| Total stockholders’ equity | US$ in thousands | 1,308,540 | 1,333,160 | 1,306,630 | 1,238,410 | 1,185,690 | 1,165,510 | 1,156,700 | 1,123,780 | 1,133,560 | 1,222,250 | 1,307,310 | 1,391,330 | 1,358,990 | 1,261,180 | 1,168,030 | 1,067,960 | 967,843 | 897,327 | 1,010,760 | 1,055,270 |
| ROE | 36.50% | 37.57% | 37.42% | 38.55% | 38.93% | 37.37% | 36.38% | 34.16% | 33.02% | 29.94% | 26.36% | 24.33% | 24.98% | 27.42% | 12.85% | 11.78% | 7.32% | -14.41% | 4.26% | 4.15% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $477,639K ÷ $1,308,540K
= 36.50%
Eagle Materials Inc's return on equity (ROE) has shown a fluctuating trend over the past several quarters. The ROE increased from 24.98% in March 2021 to 38.93% in June 2023 before declining to 36.50% in March 2024. This indicates the company's ability to generate net income from shareholders' equity has varied over time.
The ROE values above 20% suggest that Eagle Materials Inc has been effectively utilizing its equity to generate profits for its shareholders. However, the significant drop in ROE to 12.85% in September 2020 and the negative ROE of -14.41% in March 2019 are concerning, indicating performance challenges during those periods.
The decreasing trend from 38.93% in June 2023 to 36.50% in March 2024 could indicate a potential decline in profitability relative to the shareholders' equity. Investors may want to monitor future ROE values to assess whether the company can sustain or improve its profitability levels.