Eagle Materials Inc (EXP)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 | 967,843 |
| Debt-to-capital ratio | 0.45 | 0.48 | 0.45 | 0.43 | 0.62 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,083,300K ÷ ($1,083,300K + $1,308,540K)
= 0.45
The debt-to-capital ratio for Eagle Materials Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 31, 2024, the ratio stood at 0.45, indicating that 45% of the company's capital structure was made up of debt. This represents a slight decrease from the previous fiscal year when the ratio was 0.48.
Analyzing further, the ratio was consistent at 0.45 in both 2024 and 2022, suggesting a stable debt-to-capital structure during those years. In contrast, there was a notable decrease in the ratio to 0.43 in 2021, followed by an increase to 0.62 in 2020, indicating higher reliance on debt relative to capital during those periods.
Overall, while the debt-to-capital ratio has fluctuated year over year, it is essential for investors and stakeholders to assess the company's debt management practices, financial stability, and risk exposure, especially considering the varying impacts of debt on the capital structure over time.