Eagle Materials Inc (EXP)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 660,194 | 623,764 | 505,967 | 473,810 | 133,819 |
| Long-term debt | US$ in thousands | 1,083,300 | 1,079,030 | 938,265 | 1,008,620 | 1,567,320 |
| Total stockholders’ equity | US$ in thousands | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 | 967,843 |
| Return on total capital | 27.60% | 27.54% | 24.42% | 20.01% | 5.28% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $660,194K ÷ ($1,083,300K + $1,308,540K)
= 27.60%
Eagle Materials Inc's return on total capital has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in generating profits relative to its total capital employed. The return on total capital has steadily increased from 5.28% in 2020 to 27.60% in 2024, demonstrating a significant enhancement in the company's capital utilization efficiency. This consistent growth suggests that Eagle Materials Inc has been effectively utilizing its capital to generate higher returns for its stakeholders. Higher returns on total capital signify that the company is generating more income per dollar of capital employed, reflecting positively on its financial performance and profitability.