Eagle Materials Inc (EXP)
Return on total capital
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 623,148 | 633,669 | 636,510 | 632,429 | 625,526 | 642,890 | 622,736 | 617,468 | 596,676 | 562,332 | 541,794 | 499,294 | 484,486 | 459,669 | 448,379 | 425,972 | 440,088 | 434,640 | 181,185 | 163,272 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,456,700 | 1,496,140 | 1,431,650 | 1,350,800 | 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 |
| Return on total capital | 42.78% | 42.35% | 44.46% | 46.82% | 47.80% | 48.22% | 47.66% | 49.86% | 50.32% | 48.25% | 46.84% | 44.43% | 42.74% | 37.61% | 34.30% | 30.62% | 32.38% | 34.46% | 15.51% | 15.29% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $623,148K ÷ ($—K + $1,456,700K)
= 42.78%
Eagle Materials Inc's return on total capital has shown a generally positive trend over the analyzed period from June 30, 2020, to March 31, 2025. The ratio started at 15.29% in June 2020 and increased steadily to reach 50.32% by March 31, 2023, demonstrating significant improvement in the company's ability to generate returns relative to its total capital.
After peaking at 50.32% in March 2023, the return on total capital exhibited a slight decline, fluctuating between 42.35% and 47.80% until March 31, 2025. Despite these fluctuations, the ratio remained relatively high, indicating that Eagle Materials Inc has been effectively utilizing its capital to generate returns for its stakeholders.
Overall, the upward trend in the return on total capital over the analyzed period reflects the company's efficient capital management and ability to maximize returns on the total capital employed in its operations. Investors and stakeholders may view this performance positively as it signifies the company's ability to generate profits relative to the resources invested.