Eagle Materials Inc (EXP)
Debt-to-equity 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-equity ratio | 0.83 | 0.91 | 0.83 | 0.74 | 1.62 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,083,300K ÷ $1,308,540K
= 0.83
The debt-to-equity ratio of Eagle Materials Inc has shown fluctuations over the past five years. As of March 31, 2024, the company's debt-to-equity ratio stands at 0.83, indicating that the company has $0.83 in debt for every $1 of equity. This ratio has decreased compared to the previous year, where it was 0.91.
Looking back at the trend, the ratio was relatively stable in the range of 0.74 to 0.91 from 2021 to 2023 before experiencing a significant spike to 1.62 in 2020. This spike could suggest a period of increased debt relative to equity, which may have posed financial risks or constraints on the company.
The recent decline in the debt-to-equity ratio in 2024 could indicate that Eagle Materials Inc has been actively managing its debt levels or increasing its equity base. A lower ratio generally signifies lower financial risk and a stronger financial position, as the company is relying less on debt financing.
Overall, analyzing the debt-to-equity trend of Eagle Materials Inc showcases the company's varying capital structure and financial leverage over the years, highlighting periods of potential financial stability and risk.