Eagle Materials Inc (EXP)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 633,729 | 661,237 | 585,636 | 472,813 | 468,598 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,456,700 | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 |
| Return on total capital | 43.50% | 50.53% | 49.39% | 41.71% | 34.48% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $633,729K ÷ ($—K + $1,456,700K)
= 43.50%
Eagle Materials Inc's return on total capital has shown a positive trend over the past five years, starting at 34.48% on March 31, 2021, and steadily increasing to reach 50.53% by March 31, 2024. This indicates the company's ability to generate profits relative to the total capital employed has improved significantly over this period. However, there is a significant drop to 0.00% by March 31, 2025, suggesting a potential issue with the company's capital utilization or profitability in that particular year. It would be important for stakeholders to investigate the reasons behind this sudden decline to assess the company's financial health. Overall, the upward trend in return on total capital demonstrates Eagle Materials Inc's efficient use of capital and ability to generate returns for its investors.