Eagle Materials Inc (EXP)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,264,590 | 2,947,020 | 2,781,000 | 2,579,650 | 2,838,680 |
| Total stockholders’ equity | US$ in thousands | 1,456,700 | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 |
| Financial leverage ratio | 2.24 | 2.25 | 2.35 | 2.28 | 2.09 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,264,590K ÷ $1,456,700K
= 2.24
The financial leverage ratio of Eagle Materials Inc has shown a gradually increasing trend over the past five years. As of March 31, 2021, the ratio stood at 2.09 and increased to 2.28 by March 31, 2022. Subsequently, the ratio continued to climb to 2.35 by March 31, 2023, before experiencing a slight decrease to 2.25 by March 31, 2024. As of the most recent data available, March 31, 2025, the financial leverage ratio of the company stood at 2.24.
This trend indicates that Eagle Materials Inc has been utilizing more debt in its capital structure compared to equity over the years, potentially increasing financial risk. The company's ability to effectively manage this leverage and generate sufficient returns to cover debt obligations will be crucial in maintaining financial stability and sustainable growth in the future.