Eagle Materials Inc (EXP)

Solvency ratios

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
Debt-to-assets ratio 0.37 0.35 0.37 0.39 0.39 0.39 0.40 0.40 0.36 0.33 0.31 0.35 0.36 0.37 0.44 0.49 0.53 0.44 0.40 0.37
Debt-to-capital ratio 0.45 0.43 0.45 0.48 0.48 0.47 0.49 0.50 0.45 0.41 0.38 0.42 0.43 0.44 0.52 0.58 0.62 0.51 0.48 0.44
Debt-to-equity ratio 0.83 0.77 0.83 0.92 0.91 0.90 0.97 1.00 0.83 0.69 0.62 0.73 0.74 0.80 1.07 1.40 1.62 1.04 0.92 0.80
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

Eagle Materials Inc's solvency ratios show a consistent trend over the given period. The debt-to-assets ratio has ranged from 0.31 to 0.53, indicating that the company's debt level relative to its total assets has been relatively stable. The debt-to-capital ratio has fluctuated between 0.38 and 0.62, suggesting the proportion of debt in the company's capital structure has varied but is within a reasonable range.

The debt-to-equity ratio has shown some volatility, ranging from 0.62 to 1.62. This ratio indicates the extent to which the company is reliant on debt financing compared to equity, and the fluctuations may signal changes in the capital structure over time.

The financial leverage ratio, which reflects the company's total debt relative to its equity, has been relatively stable between 2.00 and 3.06. This ratio indicates the degree of financial risk the company is exposed to, and the consistent range may indicate a level of stability in the company's financial leverage over the period.

Overall, Eagle Materials Inc's solvency ratios suggest a reasonable level of debt management and financial risk throughout the reporting period. The company has maintained a balanced capital structure, with adequate levels of debt relative to assets and equity.

Coverage ratios

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
Interest coverage 15.62 15.90 15.95 16.17 17.74 19.03 20.49 16.68 16.39 14.92 12.81 12.30 10.67 9.65 5.12 4.87 3.47 -1.05 4.02 4.24

The interest coverage ratio for Eagle Materials Inc has generally been healthy and improving over the periods shown in the table. The ratio shows the company's ability to cover its interest expenses with its operating income.

From Q1 2020 to Q2 2021, the interest coverage ratio steadily increased from 3.47 to 20.49, indicating that the company's operating income was more than sufficient to cover its interest expenses during this period. This suggests a favorable financial position and less risk of default on debt obligations.

However, starting from Q3 2021 to Q4 2022, there was a slight decline in the interest coverage ratio, dropping from 14.92 to 10.67. Despite this decrease, the ratio remained at a relatively sound level, indicating that the company was still generating ample earnings to cover its interest payments.

In Q1 2023, there was a notable spike in the interest coverage ratio to 17.74, followed by a peak at 19.03 in Q2 2023, showing a temporary improvement in the company's ability to meet its interest obligations.

However, the interest coverage ratio took a significant downturn in the latter half of 2023, falling to 12.30 in Q3 2023 and further decreasing to 9.65 in Q4 2023. This suggests a potential strain on the company's ability to cover interest expenses with its operating income during this period.

The most recent data point of 15.62 in Q1 2024 indicates a recovery in the interest coverage ratio, although it is slightly lower than the previous period. It is important for investors and analysts to monitor this ratio closely in future periods to assess the company's ability to manage its debt and interest obligations effectively.