Eagle Materials Inc (EXP)

Financial leverage ratio

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	2,947,020	2,890,340	2,917,090	2,916,250	2,781,000	2,730,170	2,809,150	2,770,860	2,579,650	2,560,120	2,619,830	2,890,830	2,838,680	2,725,040	2,871,280	3,015,160	2,961,020	2,130,220	2,326,210	2,269,080
Total stockholders’ equity	US$ in thousands	1,308,540	1,333,160	1,306,630	1,238,410	1,185,690	1,165,510	1,156,700	1,123,780	1,133,560	1,222,250	1,307,310	1,391,330	1,358,990	1,261,180	1,168,030	1,067,960	967,843	897,327	1,010,760	1,055,270
Financial leverage ratio		2.25	2.17	2.23	2.35	2.35	2.34	2.43	2.47	2.28	2.09	2.00	2.08	2.09	2.16	2.46	2.82	3.06	2.37	2.30	2.15

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 shown some fluctuations over the past few quarters, ranging from 2.00 to 3.06. The ratio measures the extent to which the company relies on debt to finance its operations and investments.

Overall, the trend indicates that the company's financial leverage has been gradually increasing over the past year, with a peak at 3.06 in the first quarter of 2020 before declining to 2.25 in the most recent quarter. This suggests that Eagle Materials has been taking on more debt compared to its equity to fund its activities.

A higher financial leverage ratio typically implies higher financial risk, as the company is more vulnerable to fluctuations in interest rates and potential default. It also indicates that a larger portion of the company's assets is funded by debt, which can amplify returns but also increase the potential for financial distress in challenging economic conditions.

It is important for investors and stakeholders to closely monitor Eagle Materials Inc's financial leverage ratio to assess the company's financial health and risk profile. Fluctuations in this ratio could signal changes in the company's debt management strategies and overall financial stability.