Eagle Materials Inc (EXP)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,083,300 | 1,079,030 | 938,265 | 1,008,620 | 1,567,320 |
| Total assets | US$ in thousands | 2,947,020 | 2,781,000 | 2,579,650 | 2,838,680 | 2,961,020 |
| Debt-to-assets ratio | 0.37 | 0.39 | 0.36 | 0.36 | 0.53 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,083,300K ÷ $2,947,020K
= 0.37
The debt-to-assets ratio of Eagle Materials Inc has shown a downward trend from 2020 to 2022, indicating a decreasing reliance on debt to finance its assets during this period. The ratio decreased from 0.53 in 2020 to 0.36 in both 2022 and 2021, suggesting that the company has been managing its debt levels relative to its total assets effectively. However, there was a slight increase in the ratio to 0.39 in 2023, which could indicate a moderate increase in debt relative to assets that year.
Overall, the decreasing trend in the debt-to-assets ratio from 2020 to 2022 is a positive sign as it suggests the company is becoming less leveraged and more financially stable in terms of its debt obligations. The slight increase in the ratio in 2023 warrants further monitoring to ensure that the company's debt levels are being managed prudently.