Eagle Materials Inc (EXP)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,947,020 | 2,781,000 | 2,579,650 | 2,838,680 | 2,961,020 |
| Total stockholders’ equity | US$ in thousands | 1,308,540 | 1,185,690 | 1,133,560 | 1,358,990 | 967,843 |
| Financial leverage ratio | 2.25 | 2.35 | 2.28 | 2.09 | 3.06 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,947,020K ÷ $1,308,540K
= 2.25
The financial leverage ratio of Eagle Materials Inc has fluctuated over the past five years, ranging from 2.09 to 3.06. A higher financial leverage ratio indicates a higher proportion of debt financing relative to equity in the company's capital structure.
In 2020, the financial leverage ratio was highest at 3.06, suggesting a higher level of debt compared to equity. This may indicate higher financial risk for the company due to increased levels of debt.
Subsequently, the ratio decreased in 2021 to 2.09, which could imply a shift towards a more conservative capital structure with lower reliance on debt financing.
The ratio increased in 2022 and 2023 but decreased again in 2024. This fluctuation may suggest varying levels of debt and equity in the company's financing mix over the years.
Overall, Eagle Materials Inc's financial leverage ratio has shown variability, indicating changes in the company's debt and equity composition in its capital structure over the past five years. It is essential for investors and stakeholders to monitor these changes to assess the company's leverage and financial risk.