Reliance Steel & Aluminum Co (RS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,835,000 | 14,805,900 | 17,025,000 | 14,093,300 | 8,811,900 |
| Property, plant and equipment | US$ in thousands | — | — | 2,191,000 | 2,061,400 | 1,792,200 |
| Fixed asset turnover | — | — | 7.77 | 6.84 | 4.92 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,835,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. In the case of Reliance Steel & Aluminum Co, the fixed asset turnover has shown a positive trend over the years.
As of December 31, 2020, the fixed asset turnover ratio was 4.92, indicating that for every dollar invested in fixed assets, the company generated $4.92 in revenue. By December 31, 2021, the ratio improved to 6.84, suggesting that the company became more efficient in generating revenue from its fixed assets. The trend continued with a further increase to 7.77 by December 31, 2022, indicating improved asset utilization.
However, there is missing data for the fixed asset turnover ratio for the years 2023 and 2024. Without this information, it is challenging to assess the complete trend and evaluate the efficiency of Reliance Steel & Aluminum Co in generating revenue from its fixed assets during those years.
Overall, the increasing trend in the fixed asset turnover ratio from 2020 to 2022 suggests that the company has been effectively utilizing its fixed assets to drive revenue growth, but the lack of data for 2023 and 2024 limits a comprehensive analysis of the company's asset efficiency in those years.